mortgage bond

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Mortgage bond

A bond in which the issuer has granted the bondholders a lien against the pledged assets. See: Collateral trust bonds
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

Mortgage Bond

A long-term bond secured by the payments on one or more mortgages. For example, a mortgage corporation may issue a bond backed by payments it receives from clients. This provides the issuer with working capital while providing a relatively safe investment for bondholders. In the event of default, bondholders have the right to take possession of and sell the property underlying the mortgage in order to recover their investments. See also: Mortgage-backed security.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

mortgage bond

A long-term debt security that is secured by a lien on specific assets, usually on fixed assets such as real estate. See also closed-end mortgage, open-end mortgage.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
References in periodicals archive ?
The ETF tracks US agency mortgage backed bonds, including Fannie Mae and Freddie Mac.
Madigan is suing S&P for its alleged "fraudulent role" in assigning top credit ratings to mortgage backed bonds that subsequently plunged in value during the global credit crisis.
He was charged with artificially driving up prices of sub prime mortgage backed bonds at the peak of the housing and credit crisis between august 2007 and February 2008.
Rodolitz is proposing the recapitalization of the commercial real estate industry throughout the country through a mechanism of federally isued mortgage backed bonds. With limited tax exempt status, a 4 percent interest and 90 percent of the instrument guaranteed by Washington.

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