Examples of RMBS in a sentence
The investment characteristics of RMBS differ from traditional debt securities.
Accordingly, amounts available for reinvestment by the Fund are likely to be greater during a period of declining mortgage interest rates and, if general interest rates also decline, are likely to be reinvested at lower interest rates than the Fund was earning on the RMBS that were prepaid.
The major differences include the fact that interest payments and principal repayments on RMBS are made more frequently (usually monthly), and principal may be prepaid at any time because the underlying mortgage loans or other assets generally may be prepaid at any time.
RMBS are securities that directly or indirectly represent participations in, or are secured by, and payable from, mortgage loans secured by real property.
The major differences include the fact that, on certain RMBS, prepayments of principal may be made at any time.