mortgage bond


A bond secured by a mortgage on a property. Mortgage bonds are backed by real estate or physical equipment that can be liquidated. These are usually considered high-grade, safe investments. If an issuer in default has both secured and unsecured bonds outstanding, secured bondholders are paid off first, then unsecured bondholders. Naturally, because unsecured bonds carry greater risk than secured bonds, they usually pay higher yields.

Use mortgage bond in a sentence

You should always shop around and make sure you are getting a good rate before you take on a mortgage bond.

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They backed it up with a mortgage bond, which came as good tidings to us considering how we had been burned by higher risk options in the past.

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When my wife and I sat down at closing there were so many pages to sign, it was like a blur but I really poured over the Mortgage Bond and the significance of the responsibility.

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