Three pen holders.

And the equity holders get wiped out, the old equity holders.

It's the debt holders.

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.

And we learned that the debt holders were actually more senior to the equity holders.

It couldn't pay it's debt holders.

It would penalize the equity holders.

And pays off the liability holders.

I mean, they're just place holders.

So in exchange it gets treasury securities.

And equity securities you're probably familiar with.

We're from the Securities and Exchange Commission.

And if there wasn't enough money to pay all of the debt holders, then the equity holders got nothing.

Equity holders, they kind of took a gamble.

Well, it's the debt holders get first dibs.

Welcome to my presentation on mortgage backed securities.

So let's say these are debt holders right here.

There might be different debt holders who have different

And in this case the equity holders get nothing.

And it's also going to benefit the bond holders.

Call the other card holders, get them in here.

All green card holders please proceed to hangar D4

I have a whole video on mortgage backed securities.

And they rate these assets, these mortgage backed securities.

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?

But that's the view from the debt holders' point of view.

The equity holders, you can imagine, they don't want to be

So the equity holders are actually the owners of the company.

And then anything that's left over goes to the equity holders.

The backbone of making investment decisions for global holders of capital.

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.

And essentially, the debt holders become the new shareholders of the company.

The only people who will lose big are the old equity holders.

And so you're writing a 1 billion check to the equity holders and a 1 billion check to the liability holders, or the people who lent this company money.

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