Credit-Risk Transfer Security

Credit-risk transfer security is a security transferring specified mortgage credit risk from an issuer or guarantor to investors.

Why this matters to income investors

Income comes with exposure to specified mortgage credit losses rather than a full agency guarantee.

How to use credit-risk transfer security in your research

Read the underlying loan and security disclosures. Check repayment speed, credit losses, financing, and payment priority because each can change the cash income available to investors.

This material is general education and information, not individualized investment, tax, or legal advice.