Generic Securities


DEFINITION of 'Generic Securities'

A security backed by recently issued loans or mortgages. Its value is less than that of a security whose backing is over one year old. Securities over a year old are called seasoned securities.

BREAKING DOWN 'Generic Securities'

A generic security does not yet have a history that potential investors can look to for past performance rating as a seasoned security does. However, as they are valued less by investors, generic securities are less expensive to purchase.

  1. Security

    A financial instrument that represents an ownership position ...
  2. Bond

    A debt investment in which an investor loans money to an entity ...
  3. Mortgage

    A debt instrument, secured by the collateral of specified real ...
  4. Loan

    The act of giving money, property or other material goods to ...
  5. Seasoned Security

    1. A financial instrument that has been publicly traded in the ...
  6. Mortgage-Backed Security (MBS)

    A type of asset-backed security that is secured by a mortgage ...
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