A mortgage-backed security (MBS) is an ABS where the specific assets behind the security are mortgages. A collateralised debt obligation (CDO) is an ABS where the specific assets behind the security are bonds, often a pool of MBS.

A CMO is a type of MBS, but CMOs are different because they are broken up into tranches, and the way the investors who own them get paid is different than with a traditional MBS.

A credit default swap (CDS) contract is bound to a loan instrument, such as municipal bonds, corporate debt, or a mortgage-backed security (MBS). The seller of the CDS agrees to compensate the buyer in the event of the loan's default until the maturity date of the CDS contract.

Mortgage-backed securities (MBS) are fixed-income securities that utilize mortgage loans as collateral and the source of funds for payments on the security. The creation of MBS begins with a financial institution such as a bank or credit union extend- ing a mortgage loan to a borrower.