Mortgage-backed securities are self-liquidating.

Name: Mortgage-backed securities are self-liquidating.
Brand: Quizplus
Rating: 4.8 (51 reviews)

Question

Quizplus · Accepted Answer

Mortgage-backed securities are self-liquidating because the payments made by homeowners on their mortgages pass through to the investors who own slices of the pool of mortgages that backs the securities. As the homeowners pay their mortgages off or refinance, the principal and interest payments are passed through to the investors until the mortgage is paid in full and the security is "liquidated".

Mortgage-Backed Securities Are Self-Liquidating