Invests primarily in U.S. agency mortgage-backed pass-through securities issued by Ginnie Mae (GNMA), Fannie Mae (FNMA), and Freddie Mac (FHLMC). Moderate interest rate risk, with a dollar-weighted average maturity of 3 to 10 years. Backed by the Government One of the primary features of...
Mortgage-backed securities typically offer yields that are higher than government bonds. Securities with higher coupons offer the potential for greater returns but carry increased credit and prepayment risk, meaning the realized yield could be lower than initially expected. Investors may receive higher pa...
thereby gaining both a source of new funds as well as greater flexibility to pursue new business. The benefit to the buyer—usually institutional investors—is that they can pick up additional yield relative to government bonds and augment their portfolio diversification. ...