Mortgage-Backed Security
/ˈmɔːrɡɪdʒ bæktt səˈkjʊrɪti/
Definitions
- (n.) A financial instrument secured by a pool of mortgages, representing claims on the cash flows from mortgage repayments.
Investors purchased mortgage-backed securities to gain exposure to real estate debt markets.
Forms
- mortgage-backed securities
Related terms
See also
Commentary
Distinguish mortgage-backed securities from other asset-backed securities by their specific backing of residential or commercial mortgages; clarity in describing the underlying asset pool is crucial in drafting.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.