I am retired now, but at one time I held 5 securities licenses including branch manager of a small securities firm. I am not sure what point Ms Parker is trying to make.  A mortgage-backed security (MBS) is an asset-backed security or debt obligation that represents a claim on the cash flows from mortgage loans, most commonly on residential property. Mortgage-backed securities fluctuate in price in response to changes in interest rates (when interest rates fall, prices rise, and vice versa.) An investor could pay more or less than $10,000 for a $10,000 bond. Interest rate movements have an additional impact on mortgage-backed securities because they affect prepayment rates. When homeowners refinance their mortgages the investor will receive the return of their principal back sooner than expected.  The worst thing that can happen is that the investor receives his money back. Most mortgage backed securities are AAA rated which means that the obligation is backed by the full faith and credit of the agency that issued the security, GNMA (Ginnie Mae) are a direct obligation of the treasury and FNMA (Fannie Mae) and FHLMC (Freddie Mac) have special permission to borrow from the treasury (taxpayers) to meet their obligations. If Ms Parker is worried that people will receive their bond investment money back, I’d say she is barking up the wrong tree. When investors bought the securities they should have known the risks. We did pay for 12 years of schooling, didn’t we? They can read and figure, can’t they? I doubt their teachers hid this information from them. The rub would be if the investor paid a premium for the mortgage backed security due to interest rate fluctuation. If they paid more than par of 100, they will only receive par as return of principal. There is another danger and that if the refinanced mortgages are refinanced at a lower principal balance. Such action would depress the values of surrounding homes in the short term. Rule one. A home is not a real investment. It is a place to live where you get to mow your own lawn and pound nails in the wall without asking the landlord. You are NOT entitled to a profit when you sell. Am I missing something here? Perhaps people misunderstand the term capitalism.