Financial Derivatives Flashcards
1
Q
ARM(Adjustable-rate mortgage)
A
designed to shift interest-rate risk
2
Q
MBS(mortgage-backed security)
A
A group of home loans that are bought from banks, investors get money.
3
Q
CDO(Collateralized debt obligation)
A
A structure showing the pool of loans that are bought from investors
4
Q
CDS(credit default swap)
A
boost the amount you earn in interest when the money is invested and kept away.