Conservative Economics

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Subject: Mortgage-backed Securities

These are debt instruments backed by a pool of mortgages. [Capital Market Taxonomy]

Social change:

Thriving without a credit card

The Crash of 2008 is restructuring the availability of consumer credit as well as household spending and saving habits.

Restricted availability of consumer credit and a greater propensity of households to save before spending, may result in less use of credit cards and smaller mortgages. A return, even partial, to saving habits of the 1950s could stimulate economic recovery.

The popular Dave Ramsey radio and TV shows suggest that a societal change in this direction is at least possible. Lower levels of personal debt would boost the economy and make people happier.

Q1 2006

Mortgage lending continues strong

Breakdown of mortgage borrowing

Mortgage lending, a major component of the US bond market, continued strong in Q1 2006.

The four largest suppliers of mortgage funds continue to be commercial banks, savings institutions, agency mortgage pools, and issuers of asset-backed securities, accounting for 86.8% of the market in Q1 2006.

Q1 2006

Non-GSE’s rush to mortgage-backed securities

Loans made by Issuers of Asset-Backed Securities

After having the market for mortgage securitization virtually to themselves while Fannie Mae was in the regulatory doghouse, issuers of asset-backed securities again face fierce competition as government-sponsored enterprises returned with a vengeance to the market.

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Featured articles on inside pages

Stock buybacks

Stock buybacks dry up

Since 1982, US equities have been driven upwards by stock buybacks. Federal Reserve statistics show corresponding sales of stocks as executives exercised options to take advantage of manipulated prices. More ...

Securities Analysis

Innovative institutional research methods

The Crash of 2008 led to questions concerning the scope and quality of institutional investment research. The flood of open source investment data on the Internet presents opportunities to researchers.There are new ways to manage institutional research, including separation of fact-gathering from data analysis, out-sourcing, student-sourcing, and home-sourcing, financial taxonomy, and semantic wikis.
More ...

US Politics

What is the future of private pension plans?

Between 1999 and 2002, US private pension funds lost US$ 1.2 trillion in value. It would almost seem that pension fund managers had been speculating with retirement money, attempting to beat each others' short-term performance statistics, with little interest in safeguarding the assets of plan beneficiaries. More ...

US equities

Stock values and cash dividends wither

Wall Street ballyhoo and flim-flam to the contrary, the year 2005 closed-out half a decade of misery and pain for the average investor in US equities. Average cash dividend yields never surpassed 3.8% during the period, and most of this was consumed by taxes and management expenses of the open-end mutual funds. More ...

US Bonds

The collapse of the dollar and US bonds?

The extreme spending of the Obama government, combined with irresponsible bank lending policies promoted by Barney Frank and Chris Dodd, portend rising interest rates, the collapse of the bond market, and the end of dollar supremacy. More ...

World Economy

Working off the US trade deficit

Foreigners hold $16.8 trillion in US financial assets as a result of selling more goods to Americans than they buy from them. Since the 'deficit' is in dollars, the US has no problem in 'paying it off'. More ...

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2011-08-17 16:04