in 2008, high yield b rated bonds went as high 22% in the peak of panic. This also coincided with the peak of panic for stocks. Quality high growth potential stocks sold for fantastic prices and valuations. And it makes sense to not make sense this way. Bonds are debt, and must get paid first as part of normal business operation. Equity gets the excess profits...
Mortgage bonds are taking a hit and testing June 14th lows, following a higher-than-expected August inflation reading of +8.3% y/y ( vs expected +8.1%). MACD is crossing down through the signal, reflecting the downward shift in momentum. It remains to be seen whether to Fed will hike 75bps or 100bps at their Sept 20-21 meeting. Given their steady hawkish remarks...
What is a Mortgage Backed Security? A Mortgage Backed Security are shares of a Special Purpose Entity (SPE) that holds mortgages. Whenever someone buys a home they usually purchase it with a mortgage. Investment Banks (underwriters) put up the capital and create a mortgage agreement with the home owner. Banks don’t want to carry the risk of mortgages...
Ishares MBB ETF look at mbb like 2008 Caution The iShares MBS ETF (MBB) seeks to track the investment results of an index composed of investment-grade mortgage-backed pass-through securities issued and/or guaranteed by U.S. government agencies. Sincerely L.E.D In Spain at 04/28/2022
Idea for MBS: - Mortgage Backed Securities bubble is about to pop. GLHF - DPT
Speculative Idea for MBB (Mortgage-Backed Securities ETF): - Why is there a speculative housing bubble in the middle of a crisis? - "A major catalyst of the general financial crisis of 2008 was the subprime mortgage crisis of 2007, when a rising wave of defaults on home mortgages sent the value of mortgage backed securities plunging." - "They're in trouble right...
The #RealEstate sector is looking very strong. If you're bullish bonds, keep a close eye on the MBS ETF, which has broken out & is a fairly good proxy for mortgage rates (rising bond, falling rates). I don't see a lot of people talking about this. Great for homebuyers $MBB
Mortgage Backed Securities ETF $MBB broke above its falling trend line a few weeks ago, now breaking out above horizontal resistance from last summer's high at 78.6 Fib retracement. $XLRE #realestate
$MBB Mortgage Backed Securities starting to break out of its bull flag and longer term downtrend line. RSI already broken out.