By Bram Berkowitz, The Motley Fool
Publication Date: 2026-08-14 01:50:00
In 1970, Ginnie Mae first introduced the concept of a mortgage-backed security (MBS), a financial asset backed by a pool of mortgages that serves as collateral and passes its cash flows to investors.
It marked the birth of asset-backed securitization, which would spread to a wide range of assets, including auto loans, personal loans, student loans, and a broad swath of commercial loans.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a “Double Down” signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same “Total Conviction” signal is flashing for a company 1/100th the size of Nvidia. Continue »
Now, Nvidia (NASDAQ: NVDA) CEO Jensen Huang has a bold plan to launch what essentially amounts to chip-backed securities, with the collateral being graphics processing units (GPUs).
Huang is planning to partner with major Wall Street firms to create these financial instruments to continue fueling the AI build-out. What could go wrong?
Turning to private credit
Thus far, much of the AI build-out has been made possible by the hyperscalers’ balance sheets. Companies like Microsoft, Alphabet, Amazon, and Meta Platforms have long been cash-generating machines.
But in recent years, they’ve depleted much of their free cash flow, raised equity, and turned to debt to fund what looks set to surpass…
