And you end up with a mortgage backed security.

So these shares each of these one million shares this is a mortgage backed security.

I think it's a distraction.

I have a whole video on mortgage backed securities.

That's how loans worked before the mortgage backed security industry really got developed.

So this is a form of a collateralized debt obligation.

But we have to start with the basics.

Some of them are going to pay ahead of time.

Real estate.

But anyway, this isn't the crux of it either.

I make are to the bank.

But on average this Special Purpose Entity will then be able to pay a dividend.

Now to finish the job you began! It was a pleasure meeting you, but we don't want you here.

This real estate guy.

And that's why they are called derivative instruments.

I already ran a property record search On the shed where you found the toads,

And the cash flow will come back to it.

You group them all together.

Mortgage backed security.

Do pay?

Hey, it's a pleasure. Good to meet you.

You'd have to sell that loan to someone else.

I've gone over all of it with your money managers.

Coldwell Banker, I'm a real estate agent! Please, don't hurt me.

So there's no way for him to invest in this security and to get better returns.

So let's make some very simple assumptions for ourselves.

But you should watch the videos on mortgage backed securities and collateralized debt obligations, if you want to get a better understanding of exactly how the money flows go.

And this guy's an investment bank instead of a commercial bank.

Charlie the barber.

Somebody solvent?

I develop real estate.

And the loans are just the right on these 10 payments.

No. Oil and real estate.

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

But what you read about the most right now in the newspapers is mortgage backed collateralized debt obligations.

She is an estate agent.

Mmhm. It's a real estate investment.

Sent over from an automobile company Vehicle maintenance person

Who you with, the water department or the real estate office?

Her old man... eh Strode Realty?

I'm meeting with our realtor.

Real estate, that's not your thing.

The real estate market's booming in Rio.

Your real estate agent, when is she supposed to come back?

The Arizona Ranchman. We got real estate. We got...