Pass Through MBS Deal

From Open Risk Manual

Definition

Pass Through MBS Deal. An issue of Mortgage Backed Security instruments in which payments on the pool are passed through to investors


Issues and Challenges

The cashflows from interest and principal payments on the mortgages in the underlying pool are passed on to investors, usually with the deduction of fees in for them of a reduction in a mumber of percentage points or a monetary amount. Modeling note: Thinking about this further, and after more PoC reviews, it seems to me that we should simply define two kinds of Deal which are Tranched and Pass Thtrough, just below the level of Pool Backed Securities Deal. Investigaiton of various SMOs and REMICs and the like suggests that the original PoC term duality shown here (Tranched = Non Agency; Pass Through = Agency) is too simplistic.

Disclaimer

This entry annotates a FIBO Ontology Class. FIBO is a trademark and the FIBO Ontology is copyright of the EDM Council, released under the MIT Open Source License. There is no guarantee that the content of this page will remain aligned with, or correctly interprets, the concepts covered by the FIBO ontology.