A mortgage bond is a bond that is secured by what?

A mortgage bond is secured by a pool of mortgage loans, meaning that the bond is backed by the cash flows generated from the underlying mortgages. In the event of default, bondholders have a claim on the real estate assets that secure these loans. This provides a level of security to investors, as the bond is tied to tangible property values. Typically, mortgage bonds are issued by financial institutions or government agencies.