Mortgage participation certificates, unlike bonds, have no fixed income and the nominal value. Yield of these securities depends on how well the company, which trust mortgage, will collect payments on mortgage loans. Although, in the event of bankruptcy of the management company, the holders of certificates also are not in danger of losing money – funds are management of the company and can not be used to repay its debts to creditors. The risk of defaults on mortgage bonds, is directly connected with its software. Providing real estate and the state guarantee for mortgage bonds suggests that they are less risky (and profitable) than corporate bonds, but more profitable than the state. Total MBS are characterized by such factors as reliability, transparency, accessibility and sustainability.
Mortgage-backed securities in the form of bonds were well known in pre-revolutionary Russia, and enjoyed great popularity among the population, since bringing in a steady income prescribed percentage, and could be sold on the exchange at any time. For the same reasons modern Russian MBS will always be attractive for both domestic and overseas investors. Today, mortgage securities are in demand worldwide. They are provided with real estate, which is always a price. That means a guarantee of profitability this financial instrument is the dynamics of growth in property prices. In million cities in recent years, the average rise in house prices is about 30% per year. In recent years, in some regions it rose to 50%. Of course, not every kind of investment can bring similar earnings.
