• A Z-bond, also known as an accumulation bond, is often the last bond to mature. He receives the payment, which is the accrual of interest added to the principal after all other classes of bonds.
  • A Z-bond is a type of mortgage-backed security (MBS) and the last tranche of a secured mortgage obligation (CMO).
  • Z-bonds are classified as speculative investments and can be risky for investors.