Note: Mortgage-backed securities played a central role in the financial crisis that began in 2007 and wiped out trillions of dollars, bringing down Lehman Brothers and roiling world financial markets.
A mortgage-backed security (MBS), also known as a "mortgage pass-through" or a "pass-through certificate", is an investment instrument that represents ownership of an undivided interest in a group of mortgages. Principal and interest from the individual mortgages are used to pay principal and interest on the MBS.
25 Investments: Municipal Bonds
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