If investors are wanting to buy more MBS, then the prices are going to go up (Price vs. Demand function). Higher prices mean that Big Bank A makes more on a given coupon, which means they can ...
Conversely, yields that are low enough may have prices under Par (100.00), meaning that investors could buy $100.00 worth of MBS at a discount. Bottom line, the higher the coupon of MBS ...
If you have a mortgage, you may be unknowingly participating in a mortgage-backed security (MBS). That is, your home loan may be part of a pool of mortgages that has been packaged ...