Mortgage-bonds Quote by Michael Lewis
![“These Ginnie Maes suck. They get longer [in maturity] when rates go up, and shorter when rates go down, and nobody wants them” quote by Michael Lewis](https://sms4smile.com/quotes/img-quotes/9e2/michael-lewis-705_mortgage-bonds_these-ginnie-maes-suck-they-get-longer-i_1519459.jpg)
““These Ginnie Maes suck. They get longer [in maturity] when rates go up, and shorter when rates go down, and nobody wants them””
About This Quote
Source Book: The Big Short by Michael Lewis, 2010
Ginnie Mae securities lengthen with higher rates and shorten with lower rates, making them undesirable to investors.
In simple terms: Ginnie Mae bonds change length with rates, deterring investors.
Key Takeaway
Avoid investing in Ginnie Mae when rates fluctuate.
Themes
finance
investment
bond market
interest rates
Mood
cautious
analytical
Type
educational
critical
When to use this quote
- mortgage lending
- portfolio management
- risk assessment
- policy analysis
Key Concepts
duration risk
market perception
Questions to Reflect On
- How do rate changes affect bond attractiveness?
- What alternatives exist for stable returns?
A Different Perspective
Higher rates can increase borrowing costs, offsetting benefits of longer maturities.
![“Crucial decisions are made, today as thousands of years ago, in terms of the intuitive guesses and preferences of a few men in positions of authority...[it is] quite likely that the fate of entire societies may be sealed by a series of avoidable mistakes committed by their leaders.” quote by Michael Lewis](https://sms4smile.com/quotes/img-quotes/a59/michael-lewis-705_decision-making_crucial-decisions-are-made-today-as-thou_16888.jpg)
