Pass-Through Security
A pool of fixed-income securities backed by a package of assets. A servicing intermediary collects the monthly payments from issuers, and, after deducting a fee, remits or passes them through to the holders of the pass-through security.
Also known as a "pass-through certificate" or "pay-through security." Investopedia Says:
The most common type of pass-through is a mortgage-backed certificate, where homeowners' payments pass from the original bank through a government agency or investment bank to investors. Related Terms:
Asset-Backed Commercial Paper
Collateralized Mortgage Obligation - CMO
Commercial Mortgage Backed Securities - CMBS
Dollar Roll
Drop
Fannie Mae - Federal National Mortgage Association - FNMA
Fannie Mae - Federal National Mortgage Association - FNMA
Mortgage Backed Security - MBS
Pass-Through Certificate
Sequential Pay CMO |