Why Don’t Wall Street Firms Offer Trust Deed Investments?

By allocating your nest egg across different asset classes, a strategy known as asset allocation, financial planning experts say that you are able to reduce your risk. Stocks, bonds, and real estate are just three examples of asset classes to invest in. Investing in trust deeds could be considered by some as a ‘sub- class’ of real estate. Wall Street is a major player in mortgage backed securities, which does relate to trust deed investing. So why don’t the big Wall Street firms offer trust deed investments?

There are two factors, both the size of each investment and the work involved in creating each investment, which make trust deeds an investment that most Wall Street firms cannot easily offer.Other Wall Street firms see the business of investing in trust deeds as a non-scalable business. What else would you add to this discussion about why most Wall Street firms don’t offer trust deed investments?

Posted by Corey Dutton, Private Money Lender