merits and demerits of Mortgage-backed securities as an alternative investment

Hello.


Main merits (from magnumfunds.com):

"mortgage-backed securities offer:
1) high returns, which can be 100-200 basis points higher than
comparable-maturity Treasuries (before leveraging is applied);
2) a wide range of products, with pass-throughs offering a variety of
coupons (at both fixed and adjustable rates)...;
3) high credit quality, typically AAA; and 
4) liquidity, as there is an active and liquid market for
mortgage-backed securities that is now comparable to the corporate
bond market in terms of size and constitutes a major segment of the
fixed-income markets."
source: Magnum Funds: Mortgage-backed Securities
http://www.magnum.com/hedgefunds/mortgagebackedsecurities.asp


Main Demerits (from ellington.com):

"Prepayment risk
Prepayments are the primary feature that differentiates the MBS market
from other fixed income sectors. A prepayment is the early repayment
of mortgage principal that results from the sale of a home, or the
refinancing or partial principal pay down (curtailment) of an existing
mortgage."

"Interest rate risk...
...when rates drop and mortgage rates decrease, refinancing and
housing turnover in general will increase. This will have the effect
of shortening the average life of most MBS."

source:
"About Mortgage Backed Securities"
http://www.ellington.com/mbs.html

Also see:

"Advantages and Risks of Mortgage Backed Securities"
http://www.allegiancecapital.com/sctn6b.html

"Risks of Mortgage-Backed Securities"
http://www.mfea.com/NewsCommentary/FundFocus/BondFunds/TRowePrice2.asp#Risks

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search strategy:
advantages, "of Mortgage Backed Securities"
advantages, risks, "of Mortgage Backed Securities"
"prepayment risk", "of Mortgage Backed Securities"

I hope this helps.

I have previously found the same links and websites as provided by the
researcher in Google. What I want is a more in-depth analysis of the
merits and demerits of Mortgage-backed securities (MBS) as an
ALTERNATIVE INSTRUMENT, which means i require information that is able
to tell me that how MBS as an alternative instrument is better in
traditional money management (such as stocks and mutual funds. None of
the links provided gave me insight of teh merits and demerits of MBS
as an alternative instrument.

In addition, the links didnt provide much information the DEMERITS on
MBS, but on RISKS. prob the risks of MBS is one of the demerits, but
the information of the links didnt provide substantial real-life
examples, such as the historical performance of MBS to substantiate
the merits and demerits of MBS. The researcher has just merely type
the key words of the questions in Goggle search engine and provided me
the links. Moreover, the links provided are almost simliar to one
another, with no value-addedness and differentiation. What's the point
of providing me many links and all are almost homengenous. If the
answers I wanted is so brief, I would not have turned to Goggle
Answers for help.

I really hope for a refund and I'm very disappointed with the quality
of Goggle Answers. I initially thought that Goggle Answers would
provide me answers that I couldnt find on myself in Goggle or other
search engine. i'll be willing to pay a sum of money if the answers
provided are of acceptable standard, and with SINCERITY. However, i
sort of have the feelings that the researcher thinks that i didnt know
how to use the search engine. To think that he just answered my
questions by typing the questions in the search engine, I can also be
a Researcher! I wouldn't have need to pay Goggle Answers to answer my
questions!