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Banks that sold mortgage-backed securities (MBSs) during the 2008 banking crisis thought the MBSs were safe because----they were backed by homes that were mortgaged

What distinguishes a mortgage from a securities backed by a mortgage?

Mortgage-backed securities are financial products that resemble bonds, but mortgages are loans.

These​ long-term debt instruments are issued by the U.S. Treasury to finance the deficits of the federal .

Investors buy mortgage-backed securities for what reasons?

Because mortgage-backed securities are more liquid than mortgages and are backed by the businesses that issue them on the secondary market, investors like better to buy them (and, to some extent, by the federal government).

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