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What is Ginnie Mae?
Ginnie Mae is the colloquial name for the Government National Mortgage Association, or GNMA. It brokers mortgage-backed securities which are backed by the full faith and credit of the US Government.
Among Ginnie Mae, Freddie Mac, and Fannie Mae, only Ginnie Mae is actually owned by the government and issues securities which are backed by the full faith and credit of the US Government. Ginnie Mae’s mission is to increase liquidity and decrease risk to mortgage lenders so that Americans are able to purchase homes.
It does so by purchasing debt from mortgage banks, pooling it, and selling mortgage-backed securities. Freddie Mac and Fannie Mae perform similar functions, and were created at the impetus of Congress, but they were fully independent entities until 2008, when the FHFA took them over using conservatorship privileges.
Bad debt distributed widely through mortgage-backed securities were a major reason for the Subprime Meltdown and Great Recession of 2007-2009.
How Does the Money in My 401(k) Get Invested?
Employers sponsoring 401(k) plans are required to give employees the information and ability to manage their own accounts
How Much Does it Cost to Prepare a Trust?
The cost of setting up a trust varies depending on the type of trust and its complexity, but generally speaking a...
What is the EURO STOXX 50?
The EURO STOXX 50 is an index designed to give a broad representation of stock performance across the euro zone
What is the Triple Bottom (Bullish) Pattern?
The Triple Bottom pattern appears when there are three distinct low points that represent a consistent support level
What is Off-Balance-Sheet-Financing?
The most frequently used types of off-balance-sheet-financing are joint ventures, R&D partnerships, and operating leases
What is foreign exchange intervention?
If a central bank takes actions that intentionally affect the value of a currency it is Foreign Exchange Intervention
What is Margin?
The act of “going on margin” means borrowing money from the custodian of your account, in order to purchase...
What is a Stop Limit Order?
A Stop-Limit Order basically automates the preferences of an investor or trader, to reduce exposure to price uncertainty
Is successful asset allocation an art or a science?
Successful asset allocation will cater to the risk tolerance and goals based on past performances while seeking gains
How are option prices computed?
Option prices are decided by the buyers and sellers in the marketplace, but are tied closely to the amount of risk