MORTGAGE PASS-THROUGH SECURITY


Meaning of MORTGAGE PASS-THROUGH SECURITY in English

Also called a passthrough , 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 security holder as monthly payments of principal , interest , and prepayments . This is the predominant type of M.B.S. traded in the secondary market .

Campbell R. Harvey. Hypertextual finance English glossary.      Английский словарь гипертекстовых финансов.