Mortgage-Backed Securities vs. Treasury Bonds: An Introduction to Mortgage REITs: Financial Freedom, #78
By Joshua King
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About this ebook
As income investors, we constantly search for high-yield dividend products; some of the top dividend producers are mortgage REITs.
However, these products could be the most challenging investment out there. To safely invest in mREITs, you must understand the relationship between mortgage-backed securities and treasury bonds.
Once you understand the hierarchy of bond investing, starting with the Federal Funds rate, investing in mREITs will be logical.
MBS and mREITs are cyclical products, as is the housing market. There are bad, good, and great times to purchase mREITs. If you can invest during the good seasons, you will generate massive dividends and some capital gains later. Good Luck!
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Mortgage-Backed Securities vs. Treasury Bonds - Joshua King
Table of Contents
MILITARY FAMILY INVESTING | Home of the Free PDF
Mortgage-Backed Securities vs. Treasury Bonds
Monthly Dividend Tracker Template: Buy on Etsy
All Right Reserved Military Family Investing | 01 Mortgage-Backed Securities vs. Treasury Bonds
02 Life as an Income Investor
03 From Dirt to Dividends 4: Mortgage REITs
04 The Bond Book
05 Treasure in Treasuries
06 I’m Buying 30-Year Treasury Bonds over 4%
07 Treasury Bonds vs. Preferred Shares
08 Intro to REITs
09 Intro to REITs part II
10 Become a Bonafide Investor VI: Debt vs. Equity
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Mortgage-Backed Securities vs. Treasury Bonds
An Introduction to Mortgage REITs
01 Mortgage-Backed Securities vs. Treasury Bonds
02 Life as an Income Investor
03 From Dirt to Dividends 4: Mortgage REITs
04 The Bond Book
05 Treasure in Treasuries
06 I’m Buying 30-Year Treasury Bonds over 4%
07 Treasury Bonds vs. Preferred Shares
08 Intro to REITs
09 Intro to REITs part II
10 Become a Bonafide Investor VI: Debt vs. Equity
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Monthly Dividend Tracker Template: Buy on Etsy
Disclosure: I am not a financial advisor or money manager, and any knowledge is given as guidance and not direct actionable investment advice. I am an Amazon Affiliate. Please research any investment vehicles that are being considered. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.
All Right Reserved Military Family Investing
01 Mortgage-Backed Securities vs. Treasury Bonds
As an income investor, some of the highest-yielding products you can buy are mortgage real estate investment trusts (mREITs). As a trader, some of the most dangerous products you can buy are mREITS.
Indeed, you must be extremely careful when purchasing mREITs because their price (not value) can fluctuate wildly on the stock market.
To understand mREITs (for smart investing), you must understand mortgage-backed securities (MBS). Depending on the economy, MBS and treasury bonds work together (and against one another).
How to Buy Expensive Homes Safely
Understanding bond relationships. Bond investors derive the price of a bond based on risk versus one another. A good starting point for investing in bonds is "The Bond Book."
The starting point of the bond pricing hierarchy is the Federal Funds Rate which the Federal Reserve sets during its eight annual meetings.
The US Treasury sets the interest rates on Treasury products (bills, notes, bonds) based on the Federal Funds Rates. For example, if the Funds Rate is 2%, the 2-Year Treasury Note may be 2.6%, the 10-Year note may be 3.0%, and the 30-Year Bond may be 3.5%.
It’s important to note that the interest rate on the Treasury bond is not the effective rate you will receive when you purchase them. This is because you purchase them at auction, and the market determines the price (that’s a separate article).
Don’t Fumble the Bag
Bonds and risk. Bond investors consider Treasury
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