Meaning MORTGAGE PASS-THROUGH SECURITY: Also called a pass-through, a security created when one or more mortgage holders form a collection (pool) of mortgages and sells shares or participation certificates in the pool. The cash flow from the collateral pool is "passed through" to the securityholder as monthly payments of principal, interest, and prepayments. This is the predominant type of MBS traded in the secondary market
More terms such as Mortgage pass-through security in Dictionary M.
- Definition Market Out Clause:
- Examples A clause that may appear in an underwriting firm commitment that releases it from its purchase requirement if there are negative securities market developments mortgage pass-through security definition.
- Definition Monetary Gold:
- Examples Gold held by government authorities as a financial asset mortgage pass-through security explain.
- Definition Mature Economy:
- Examples The economy of a nation with a stable population and slowing economic growth mortgage pass-through security what is.
- Definition Minimum Price Fluctuation:
- Examples Smallest increment of price movement possible in trading a given contract. Also called point or tick mortgage pass-through security meaning.
- Definition Mismatch Bond:
- Examples Floating-rate note whose interest rate is reset at more frequent intervals than the rollover period (e.g., a note whose payments are set quarterly on the basis of the one-year interest rate mortgage pass-through security abbreviation.
