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Mortgage Derivative |
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Mortgage Derivative A security with a value based upon principal and interest payments on a pool of mortgages. This entitles the owner to a claim on the principal and interest payments on the particular mortgages backing the security. The risk of a mortgage derivative ultimately comes from the risk of default of the underlying mortgages. A mortgage-backed security is the most common type of mortgage derivative. Want to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit the webmaster's page for free fun content. |
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