DEFINITION of 'Guaranteed Mortgage Certificate - GMC'
A bond backed by a pool of mortgages. These bonds are issued by the Federal Home Loan Mortgage Corporation (Freddie Mac). These bonds pay out both interest and principal on a semiannual basis.
BREAKING DOWN 'Guaranteed Mortgage Certificate - GMC'
The pool is made up of residential mortgages. If the mortgage is paid off at a faster than anticipated rate, the investor will still receive the entire principal amount of their investment.