What’s the MBS Full Form?

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mbs full form

MBS is an acronym that can stand for different things depending on the context. In this blog, we have discussed two most common MBS full form, one related to a postgraduate degree in business administration, and other a type of investment product backed by mortgages. We will also explore the significance of these full forms in their field. Read on to know more!

MBS Full Form

One of the most common MBS full form is Master of Business Studies, a postgraduate degree in business administration. It is a two-year course that covers various aspects of business such as:

  1. Finance
  2. Accounting
  3. Economics
  4. Marketing 
  5. Management
  6. Law 
  7. Ethics

The eligibility criteria for MBS vary from college to college, but generally require a bachelor’s degree in business or a related field, or a diploma in business management or management science. Some colleges also conduct entrance exams such as CAT, MHT CET, CMAT, or GMAT for admission to MBS.

MBS graduates can pursue careers in various sectors like banking, consulting, education, government, healthcare, manufacturing, and retail. They can work as financial managers, business analysts, financial advisors, HR managers, management consultants, and more. The average salary package for MBS graduates ranges from INR 3 lakhs to 5 lakhs per annum.

MBS in Finance

Another common MBS full form is Mortgage-Backed Security, a type of investment product that is backed by a pool of mortgages or other real estate loans. An MBS is similar to a bond, as it pays periodic interest to the investors who buy it. However, unlike a bond, an MBS does not have a fixed maturity date, as it depends on the repayment of the underlying mortgages.

An MBS is created by a financial institution that buys mortgages from the banks or lenders that originate them. The institution then bundles the mortgages into a trust and sells shares or certificates of the trust to investors. The investors receive a portion of the principal and interest payments made by the borrowers of the mortgages. The institution also charges a fee for servicing and managing the trust.

MBSs are considered as asset-backed securities (ABS), which are securities that are backed by other assets such as loans, receivables, or leases. There are two main types of MBSs: 

  1. Pass-throughs – simple trusts that pass through the mortgage payments to the investors proportionally.
  2. Collateralized mortgage obligations (CMO) – more complex structures that divide the mortgage payments into different classes or tranches with different risk and return profiles.

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We hope that this blog helped you understand the different MBS full form. To discover more acronyms and their full forms, go through this full forms list and stay tuned to Leverage Edu. Happy Learning!

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