Pass-Through Certificates
- Pass-Through Certificates
Pass-Through Certificates (PTCs) are instruments that evidence the ownership of two or more Equipment Trust Certificates. In other words, Equipment Trust Certificates may be bundled into a pass-through structure as a means of diversifying the asset pool and/or increasing the size of the offering. The principal and interest payments on the Equipment Trust Certificates are "passed through" to certificate holders.
In short, the term "pass-through" means the issuing compant, such as Ginnie Mae has received money from the homeowner and passed it to the investor.
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pass-through — The original type of MBS structure. In a pass through, investors own a pro rata claim to the cash flows from the pool of underlying mortgages. Each investor s pro rata share of interest and principal is remitted to the investor, passed through,… … Financial and business terms
Pass-Through Certificate — Fixed income securities that represent an undivided interest in a pool of federally insured mortgages put together by the Government National Mortgage Association (Ginnie Mae). Mortgage backed certificates are the most common type of pass through … Investment dictionary
Modified Pass-Through Certificate — A fixed income security that passes through an undivided interest in a pool of mortgages. Modified pass through certificates are backed by federal loans of identical maturity and coupon date. Principal and interest payments are made to investors… … Investment dictionary
Mortgage pass-through security — Also called a passthrough, a security created when one or more mortgage holders form a collection ( pool) of mortgages sells shares or participation certificates in the pool. The cash flow from the collateral pool is passed through to the… … Financial and business terms
mortgage pass-through security — 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… … Financial and business terms
certificates of amortized revolving debt — ( CARD) pass through securities backed by credit card receivables. Bloomberg Financial Dictionary … Financial and business terms
certificates of automobile receivables — ( CAR) pass through securities backed by automobile loan receivables. Bloomberg Financial Dictionary … Financial and business terms
Real Estate Mortgage Investment Conduit — Real Estate Mortgage Investment Conduits, or REMICs, are a type of special purpose vehicle used for the pooling of mortgage loans and issuance of mortgage backed securities. They are defined under the United States Internal Revenue Code (Tax… … Wikipedia
Mortgage-backed security — Securities Securities Bond Stock Investment fund Derivative Structured finance Agency security … Wikipedia
Adjusted Exercise Price — 1. An option s strike price after adjustments have been made for stock splits to its underlying security. 2. A term used to describe the strike prices for options written on Ginnie Mae pass through certificates. 1. Anytime changes occur on… … Investment dictionary
