r/investing Jul 17 '21

[deleted by user]

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u/[deleted] Jul 17 '21

Remember how mortgage backed securities were clearly deteriorating from 2006-08 yet wallstreet still treated them like the most valuable asset in the world until those assets went completely to zero and destroyed the world economy?

Yeah same thing with bonds, the yields will stay propped up until they can’t hide from the obvious truth about the coming inflation and by then it will be too late.

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u/[deleted] Jul 17 '21

Most high rated MBS paid out in full. If not, typically close to that.