Residential Mortgage-Backed Security - RMBS
A type of security whose cash flows come from residential debt such as mortgages, home-equity loans and subprime mortgages. This is a type of mortgage-backed securities that focuses on residential instead of commercial debt.
Investopedia Commentary
Holders of an RMBS receive interest and principal payments that come from the holders of the residential debt. The RMBS comprises a large amount of pooled residential mortgages.
Related Links
What Are REITs?
Understanding the Mortgage Payment Structure
Asset Allocation within Fixed Income
See also: Commercial Mortgage-Backed Securities - CMBS, Home-Equity Loan, Interest, Mortgage, Mortgage-Backed Securities - MBS, Principal, Subprime Loan