Mortgage-backed securities (MBS) have long played a key role in the global financial markets, offering investors steady income streams while providing liquidity to the mortgage industry. An MBS is created when a pool of individual mortgages is bundled together and sold as a single security to investors. The payments homeowners make on their mortgages are then passed along to these investors. MBS have historically offered relatively attractive yields and a diversified approach to real estate investing without direct property ownership.

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