noun

MBS

em-bee-ESS

MBS (noun) means a mortgage-backed security: an investment made up of a bundle of home loans, whose value comes from the repayments the borrowers make. Example: “The bank held billions in MBS when the housing market turned.”

noun

finance A mortgage-backed security: an investment made up of a bundle of home loans, whose value comes from the repayments the borrowers make.

"The bank held billions in MBS when the housing market turned."

"Ratings agencies badly misjudged the risk in subprime MBS."

abbreviation

An initialism used in news reporting for Mohammed bin Salman, the crown prince of Saudi Arabia.

"Analysts expect MBS to push ahead with the reform programme."

Australian In Australia, the Medicare Benefits Schedule, the official list of medical services the government subsidises.

"The procedure is not covered by the MBS, so you pay the full fee."

How to Use MBS

Learner’s notes

In plain EnglishUsually an investment built out of lots of home loans bundled together.

When to use it

Written form, common in financial and news writing; spell it out on first use because the expansions differ so much.

Easily confused with

ABS → CDO MBA →

Common pairings

agency MBS subprime MBS MBS market residential MBS

Study it as flashcards or scroll it in Flow — saved to your collection.

Test yourself on “MBS” A quick quiz — meaning, synonyms & usage →

Fill the Gap

Can you complete this real example?

The bank held billions in _____ when the housing market turned.

Etymology

An initialism, expanded differently in each field.

Origin: English

Synonyms

View more →

mortgage bond mortgage-backed security

Rhymes for MBS

combs Tombs crumbs

See all rhymes for 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.