If you prefer to own individual securities, you must use a brokerage firm that facilitates over-the-counter (OTC) fixed-income trading.
Before purchasing, you must choose between different structures that offer varying levels of protection. Mortgage Backed Securities | MBS | Fannie Mae
: Real Estate Investment Trusts (REITs) like Annaly Capital Management (NLY) or AGNC Investment Corp (AGNC) specialize in mortgage-backed securities and can be traded like regular stocks. 2. Direct Purchase Through Brokerage Accounts how to buy a mortgage backed security
: Full-service firms like Charles Schwab and Fidelity Investments offer access to agency MBS issued by Fannie Mae , Freddie Mac , and Ginnie Mae.
: Individual MBS do not trade on a centralized exchange; instead, you must find a dealer through your broker to provide quotes. 3. Understanding the Types of MBS If you prefer to own individual securities, you
Older securities may sometimes be available for as little as $1,000 if they have already paid back a portion of their principal.
Popular options include the iShares MBS ETF (MBB) and the Vanguard Mortgage-Backed Securities ETF (VMBS) . Indirect Investment (Recommended for Retail Investors)
Individual investors can buy mortgage-backed securities (MBS) through two main avenues: through funds or directly through specialized brokerage accounts . While direct ownership of individual MBS is possible, it is often considered impractical for retail investors due to high minimum investment requirements and the complexity of managing cash flows. 1. Indirect Investment (Recommended for Retail Investors)