We mostly traded Ginnie Mae funds and made markets in unit investment trust products.
If the paperwork or the markups worry you, buy a Ginnie Mae fund instead.
Unscrupulous Ginnie Mae salesmen quote unrealistically high returns to investors, and the victims' common sense is overwhelmed.
Murin, the former president of Ginnie Mae, a government-owned corporation that guarantees payments on mortgages backed by federal agencies.
WSJ: Obama Administration Proposes Fannie Mae, Freddie Mac Phaseout
And if the Fed stops buying Fannie Mae, Freddie Mac and Ginnie Mae paper, it could become 1994 all over again.
But there's an easy solution to this problem: Put the Ginnie Mae in a tax-deferred account like a 401(k) or individual retirement account.
When interest rates are low and stable, a Ginnie Mae or other high-quality mortgage fund should generate some extra income, Smith Breeden's Mr. Dektar says.
WSJ: The Intelligent Investor: Are Bond Rates on a Road to Nowhere?
The 5.5% Ginnie Mae (Government National Mortgage Association) with a final maturity in 2036 is priced at 99.6 cents on the dollar to yield 5.6%.
Latest entry: Lewis Ranieri, who more or less created the business of carving up Ginnie Mae mortgage securities into tranches when he worked at Salomon Brothers.
They are also a casino game in which unexpected inflation hands the borrower a windfall and the supplier of the capital--a retiree who owns a Ginnie Mae fund--a savage loss.
All in all, a Ginnie Mae or Fannie Mae should offer a yield at least half a point over the comparable Treasury before you even give it a second look.
This includes debt guaranteed by the federal government, like money market funds and bank CDs, and the obligations of government agencies like Ginnie Mae, Freddie Mac and Fannie Mae mortgage debt.
By investing virtually all of their assets in mortgage-backed securities backed by the Government Sponsored Enterprises (GSEs: Fannie Mae, Freddie Mac, and Ginnie Mae) the Agency Mortgage REITs are able to completely deflect credit risk.
Today's announcement by the Fed that it will purchase direct debt obligations of Fannie Mae, Freddie Mac and the Federal Home Loan Banks, and also mortgage backed securities guaranteed by Fannie, Freddie and Ginnie Mae, underscores our support for the housing market.
An additional 4.5 million were guaranteed by the FHA and sold through Ginnie Mae before 2008, and a further 2.5 million loans were made under the rubric of the Community Reinvestment Act (CRA), which required insured banks to provide mortgage credit to home buyers who were at or below 80% of median income.
应用推荐