Noun: mortgage-backed security
- A security created when a group of mortgages are gathered together and bonds are sold to other institutions or the public; investors receive a portion of the interest payments on the mortgages as well as the principal payments; usually guaranteed by the government
"Mortgage-backed securities played a significant role in the 2008 financial crisis"
Derived forms: mortgage-backed securities
Type of: certificate, security
Encyclopedia: Mortgage-backed security