mortgage-backed security

from Wiktionary, Creative Commons Attribution/Share-Alike License.

• noun finance an asset-backed security whose cash flows are backed by the principal and interest payments of a set of mortgage loans.

from WordNet 3.0 Copyright 2006 by Princeton University. All rights reserved.

• noun 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