IDEAS home Printed from https://ideas.repec.org/h/spr/sprchp/978-3-030-91231-4_26.html
   My bibliography  Save this book chapter

Review of REIT and MBS

In: Encyclopedia of Finance

Author

Listed:
  • Chiuling Lu

    (National Taiwan University)

  • Chou-Yen Wu

    (Feng Chia University)

Abstract

In this chapter the history and the success of Real Estate Investment Trusts (REITs) and Mortgage-Backed Securities (MBS) in the US financial market are discussed. REITs had both great losses during financial crisis of 2008–2009 and the COVID-19 pandemic of 2020. They enhanced their financial positions after the financial crisis and their leverage ratios at the lowest records before near the pandemic. REITs have had a partial recovery at the end of 2020 and are more likely to recover in 2022. Both REITs and MBS are derived from real estate-related assets and are able to increase the liquidity on real estate investment. They also provide investors with the opportunity to diversify portfolios because real estate assets are relatively less volatile and less correlated to existing investment instruments. Therefore, REITs and MBS enhance the width and the depth of the financial market.

Suggested Citation

  • Chiuling Lu & Chou-Yen Wu, 2022. "Review of REIT and MBS," Springer Books, in: Cheng-Few Lee & Alice C. Lee (ed.), Encyclopedia of Finance, edition 0, chapter 26, pages 835-848, Springer.
    • Handle: RePEc:spr:sprchp:978-3-030-91231-4_26
    DOI: 10.1007/978-3-030-91231-4_26
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    More about this item

    Keywords

    REIT; MBS; Real Estate; Mortgage; FHA; VA; Fannie Mae; Ginnie Mae; Freddie Mac; Prepayment; Public Securities Association;
    All these keywords.

    JEL classification:

    • G10 - Financial Economics - - General Financial Markets - - - General (includes Measurement and Data)
    • L85 - Industrial Organization - - Industry Studies: Services - - - Real Estate Services

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:sprchp:978-3-030-91231-4_26. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.