mortgage-backed
UK[ˈmɔːɡɪdʒ bækt]US[ˈmɔːrɡɪdʒ bækt]
adj
(of a financial security) having its value or payments guaranteed by a collection of mortgages.
Morpheme Breakdown
mortgage
back
ed
mortgage
a loan for property
back
to support
ed
adjective suffix
Etymology
the term is a modern financial compound, built from established english words to create a transparent descriptive label. 'mortgage' itself has a rich history, entering english from old french where it signified a 'dead pledge', a loan that becomes void (dies) once repaid or is absolute (dead) if forfeited. the second element, 'backed', employs the figurative sense of 'back' as to support or endorse. the suffix '-ed' turns the verbal phrase into an adjective. thus, 'mortgage-backed' literally describes a security that is supported or guaranteed by the collective value of a pool of mortgage loans, a meaning directly logical from its components.
Analysis
Structure: mortgage (a loan for property) + back (to support) + ed (adjective suffix)
- mortgage: from old french, literally 'dead pledge' (mort 'dead' + gage 'pledge'). in this compound, it functions as the core asset noun.
- back: from old english 'bæc'. in this compound, it functions as a verb meaning 'to support or guarantee'.
- ed: from old english '-ed', '-od', '-ad', a suffix forming adjectives from nouns or verbs, indicating 'having the characteristics of'.
Examples
the investor purchased a mortgage-backed security for its steady income stream.
the 2008 financial crisis was partly triggered by the collapse of the mortgage-backed securities market.
these bonds are mortgage-backed, meaning their performance is tied to homeowners' repayments.