Meaning PRINCIPAL-ONLY (PO): A mortgage-backed security (MBS) whose holder receives only principal cash flows on the underlying mortgage pool. All the principal distribution due from the underlying collateral pool is paid to the registered holder of the stripped MBS on the basis of the current face value of the underlying collateral pool
More terms such as Principal-only (PO) in Dictionary P.
- Definition Plus:
- Examples price in 64ths. Dealers in government bonds normally give price quotes in 32nds. To quote a bid or offer in 64ths, they use pluses; a dealer who bids 4+ is bidding the handle plus 4/32 + 1/64, which principal-only (po) definition.
- Definition Pipeline:
- Examples The underwriting process that must be completed with the SEC before a security can be offered for sale to the public principal-only (po) explain.
- Definition Payback:
- Examples The length of time it takes to recover the initial cost of a project, without regard to the time value of money principal-only (po) what is.
- Definition Participating Convertible Preferred Stock:
- Examples that can be converted into common stock at the option of the holder. In contrast, to the usual preferred stock, the value of the preferred stock is refunded to the holder. That is, one gets principal-only (po) meaning.
- Definition Passive Portfolio Strategy:
- Examples involves minimal expectational input, and instead relies on diversification to match the performance of some market index. A passive strategy assumes that the marketplace will reflect all available principal-only (po) abbreviation.
