MORTGAGE BACKED BOND
\mˈɔːɡɪd͡ʒ bˈakt bˈɒnd], \mˈɔːɡɪdʒ bˈakt bˈɒnd], \m_ˈɔː_ɡ_ɪ_dʒ b_ˈa_k_t b_ˈɒ_n_d]\
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A lien on the bond issuer's assets, payable from the issuer's income secures this type of bond. These bonds offer a more predictable maturity with call protection against the bond's early redemption, unlike a mortgage backed pass-through security, which conveys an ownership right.
By Henry Campbell Black
