- mortgage-backed bond
- mortgage-backed security ( MBS) or mortgage-backed bondSecurities composed of, or collateralized by, loans that are themselves collateralized by liens on real property. MBSs can be categorized into two major types.Pass-through pools are mortgage-backed bonds created by assembling a pool of similar mortgage loans into a single security. Investors in a pass-through pool receive a portion of every interest and principal payment (less serving charges) that is equivalent to the investor's pro rata ownership share in the pool.The other major type is collateralized mortgage obligations (CMOs), usually real estate mortgage investment conduits (REMICs). Investors in a CMO own the rights to receive cash flow from an underlying pool of mortgages in a predetermined order based on priority. CMO securities are secured by pass-through pools.Both types of MBSs may be backed by either liens on residential or commercial properties; however, residential mortgages are more common. Both types of MBSs may be issued by either government agencies or private issuers; however, those issued by government agencies are more common.
Financial and business terms. 2012.
Look at other dictionaries:
mortgage-backed security — ( MBS) or mortgage backed bond Securities composed of, or collateralized by, loans that are themselves collateralized by liens on real property. MBSs can be categorized into two major types. Pass through pools are mortgage backed bonds created by … Financial and business terms
Mortgage-backed — may refer to:* Commercial mortgage backed security, type of bond commonly issued in American security markets * Mortgage backed security, asset backed security whose cash flows are backed by the payments of a set of mortgages … Wikipedia
Mortgage-backed Securities — sind besicherte Anleihen, also durch Vermögenswerte gesicherte Wertpapiere, deren Bargeldflüsse durch die Zins und Tilgungszahlungen eines Pools von grundpfandrechtlich gesicherten Forderungen getragen werden. Im Gegensatz zu Pfandbriefen… … Deutsch Wikipedia
Mortgage Backed Security — Mortgage Backed Securities sind besicherte Anleihen, also durch Vermögenswerte gesicherte Wertpapiere, deren Bargeldflüsse durch die Zins und Tilgungszahlungen eines Pools von grundpfandrechtlich gesicherten Forderungen getragen werden. Im… … Deutsch Wikipedia
mortgage-backed — UK US adjective FINANCE ► used to describe an investment, especially a bond, in which the money that is used to pay back mortgages is used to pay interest on the investment: »The mortgage backed securities market could be heavily affected by… … Financial and business terms
Mortgage-backed security — Securities Securities Bond Stock Investment fund Derivative Structured finance Agency security … Wikipedia
Mortgage-Backed Revenue Bond — A type of municipal agreement that pays holders based on revenues generated from real estate. Financial institutions also typically offer these bonds at relatively low interest rates. Proceeds are used to provide funds to these institutions,… … Investment dictionary
Commercial mortgage-backed security — Securities Securities Bond Stock Investment fund Derivative Structured finance Agency security … Wikipedia
Residential mortgage-backed security — Residential mortgage backed securities (RMBS) are a type of bond commonly issued in American security markets. They are a type of Mortgage backed security which are backed by mortgages on residential rather than commercial real estate. Industry… … Wikipedia
Lehman Brothers Mortgage-Backed Securities Index — An index made up of mortgage backed securities that is used for benchmarking purposes. The Lehman Brothers MBS Index consists of fixed rate securities, such as mortgage pools created by the Government National Mortgage Association (GNMA), Federal … Investment dictionary