Skip to content

Mortgages?

Yes, Virginia, mortgages are derivative securities. The word mort-gage means a dead-security, one for which the collateral is not a live goat or cow. Instead, the collateral is real estate.

From what are mortgages derived?

The equity position is sliced to create the debt or mortgage portion and the portion of equity that remains.

Share your thoughts, post a comment.

(required)
(required)

Note: HTML is allowed. Your email address will never be published.

Subscribe to comments