Question: What are the other features of the preferred stock?
Answer: Below are the characteristics of the preferred stocks - Usually, preferred stock has a sinking-fund provision - Sometime preferred stock is convertible into common stock.
Question: What is RMBS (residential mortgage-backed security)?
Answer: residential mortgage-backed security is an instrument whose cash-flow depends on the cash-flows of an underlying pool of mortgages(created using residential mortgages).
Question: What are the types of RMBS?
Answer: RMBS are classified as below: - Agency RMBS - Nonagency RMBS.
Question: What are the AgencyRMBS?
Answer: The RMBS which are issued by the government agencies like any one of the below. - Ginnie Mae: Government National Mortgage Association, this is an federal government agency within the Department of Housing and Urban Development. - Freddie Mac: The Federal Home Loan Mortgage Corporation - Fannie Mae: The Federal National Mortgage Association.
Hence, The Agency RMBS issued by this entity is guaranteed by the full faith and credit of the U.S. government. This is sometime referred as MBS (Mortgage backed security).