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
1
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
1
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."
2
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 notesIn 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.
Common pairings
agency MBS
subprime MBS
MBS market
residential MBS
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The bank held billions in _____ when the housing market turned.
Etymology
An initialism, expanded differently in each field.
Synonyms
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mortgage bond
mortgage-backed security
Rhymes for MBS
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.
What is the meaning of MBS?
"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.
What is another word for MBS?
Other words for "MBS" include mortgage bond, mortgage-backed security.
