MBS
What is the opposite of MBS? Here is what we hold, with its meaning and related words.
Noun — A mortgage-backed security: an investment made up of a bundle of home loans, whose value comes from the repayments the borrowers make.
How to use MBS
The word patterns that sound natural to a native speaker.
agency MBS
subprime MBS
MBS market
residential MBS
Written form, common in financial and news writing; spell it out on first use because the expansions differ so much.
Etymology
An initialism, expanded differently in each field.
Full origin of MBS →Frequently asked questions
What is the difference between MBS and ABS?
An MBS is backed specifically by mortgages on property. An ABS, or asset-backed security, is the wider category backed by other kinds of debt such as car loans, credit-card balances or student loans.
Are mortgage-backed securities safe?
They carry the risk that borrowers stop repaying and that interest rates move against you. Agency MBS guaranteed by government-sponsored bodies are treated as low risk, while private-label subprime MBS were at the centre of the 2008 financial crisis.
