A boat broker?

I'm a broker.

Something about phony securities.

They're fairly liquid securities.

Those are essentially derivative securities that are derived from mortgage backed securities.

It can buy Treasury securities, so instead of short term Treasury securities, maybe it could be longer term Treasury securities.

So what I do is I go to the broker, and I say broker, can

You pay 6 to a broker.

Anyway, so I go to the broker and I say broker, I would like to short IBM.

I apologize to if you are broker.

So once again I go to my broker and I say broker, I want to borrow a share of IBM.

So in exchange it gets treasury securities.

And equity securities you're probably familiar with.

We're from the Securities and Exchange Commission.

Welcome to my presentation on mortgage backed securities.

And they keep their shares of IBM with the broker.

I have a whole video on mortgage backed securities.

And they rate these assets, these mortgage backed securities.

The real estate broker was lavish in his spending in Ginza.

IBM who happened to be keeping the share with the broker.

And you might say well, where's the broker getting it from?

Social securities are not something that should be trifled with.

And we learned that debt securities are often called bonds.

CDOs, collateralized debt obligations, are derived from mortgage backed securities.

So AAA would be like the highest rated securities, right?

Both my nine and seven year olds have a stock broker already.

So Bear Stearns essentially just gets a fee, like the mortgage broker.

And the broker really owes it to one of the shareholders of

And so money came from when the owners of each of these mortgage backed securities each, let's say, paid 1,000 for the mortgage backed securities.

You call them stock, or stock options, derivatives, mortgage backed securities.

And we're also joined by Brent Lawson from Lawson Frisk Securities.

Welcome back to my series of presentations on mortgage backed securities.

They will give this money to the market, and in exchange they will usually buy treasury securities, sometimes something slightly different, but usually very safe securities.

I have to only invest in the safest of safest of securities.

And these shares would be called Mortgage Backed Securities. or sometimes MBSes.

Well it comes from the investors in the actual mortgage backed securities.

OK, so this broker has a ton of clients, many of whom own IBM.

And the broker says OK, well I've got all these share sitting around here.

So this is my brokerage, this is my broker, and this is me right here.

So the broker always has let's say each of these is a share of IBM.

And maybe it also does some longer term treasury securities, or whatever else.

They borrowed it from their local mortgage broker, who then sold it to a bank, or to an investment bank, who created the special purpose entity, and then they IPO the special purpose entity and raise the money from people who bought the mortgage backed securities.

And they way they get this into circulation is that they'll take these four dollars and they'll go buy securities in the open market, normally very safe and very liquid securities

And then he can pay that share back to the broker and cancel out his position.

The 400 million senior tranche we raised from 1000 senior securities, collateralized debt obligations.