Mortgage backed bond

Mortgage backed bond,

Definition of Mortgage backed bond:

  1. Bond secured by a lien on the bond issuers assets and payable from the issuers income. Unlike a mortgage backed pass-through security (which conveys an ownership right), these bonds instead offer a more predictable maturity and, thus, a type of call protection against the bonds early redemption.

Meaning of Mortgage backed bond & Mortgage backed bond Definition