A mortgage bond is a bond that is secured by a mortgage on a property. Mortgage bonds are backed by real estate or physical equipment that can be liquidated. These are usually considered high-grade, safe investments.

There could be multiple answers depending on the context of the question. One common use is to refer to a bond that is backed by a pool of mortgages. The bond produces an income to the investor and the income comes from the mortgage payments made by the borrowers for the loans that are backing the bond. An asset backed security would be another phrase.

A mortgage bond is a bond secured by a mortgage on one or more assets and are typically backed by real estate holdings. In a default situation, mortgage bondholders have a claim to the underlying property and could sell it off to compensate for the default. However, the value of the property may decline.

The symbol for Vanguard Mortgage-Backed Securities ETF in NASDAQ is: VMBS.

A mortgage is backed by real estate owned by the mortgagor.