>>164549
> QUADRILLIONS

notional value.

dig:

1. Notional Value of an MBS

Definition: The notional value of a mortgage-backed security (MBS) is the face value of the underlying pool of mortgages. It’s basically the sum of the principal amounts that the borrowers owe.

Purpose: It’s a contractual number used to calculate interest payments, prepayments, and cash flows.

Key point: It does not reflect actual risk; it just represents the “amount of debt the security is based on.”

Example: