a bond secured by a mortgage on real estate or other property.
When it comes to the commercial- mortgage bond market these days, location is everything.
The fears behind mortgage bond-gate might be real after all.
But if borrowers pay back their loan quicker than anticipated, then the mortgage bond is paid off sooner.
The rumor has slowed down the already weak market for mortgage bond investing.
The result is a less risky, less volatile investment than any individual junk mortgage bond.