Pass Through Certificate financial definition of Pass Through Certificate. Pass Through Certificate finance term by the Free Online Dictionary.

Pass-Through Security

A derivative security representing the receivables on some debt. That is, a shareholder of a pass-through security is entitled to a portion of the income from the debt. Generally, a pass-through security has a large number of debts underlying it; for example, a pass-through may represent a portion of several hundred car loans. The most common type of pass-through is a mortgage-backed security.

pass-through security

A security that passes through payments from debtors to investors. Packages of loans are assembled and sold to investors by private lenders. Although pass-through securities have stated maturities, the actual lives of the securities are likely to be shorter, especially during periods of falling interest rates when borrowers pay off mortgages early. The security derives its name from the fact that interest and principal payments made by borrowers are passed through monthly after deduction of a service fee. Also called pass through. See also Ginnie Mae pass through, production rate, weighted-average coupon rate, weighted-average maturity.

Pass-through security. When a corporation or government agency buys loans from lenders to pool and package as securities for resale to investors, the products may be pass-through securities.

That means regular payments of interest and return of principal that borrowers make on the original loans are funneled, or passed through, to the investors.

Unlike standard bonds, whose principal is repaid at maturity, the principal of a pass-through security is repaid over the life of the debt.

The best known pass-throughs are the mortgage-backed bonds offered by Fannie Mae, Freddie Mac, and Ginnie Mae. However, you can also buy pass-through securities backed by car loans, credit card debt, and other types of borrowing. Those are known as asset-backed securities.

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Agency Pass-Throughs CARDs Certificates for Amortizing Revolving Debts Certificates of Amortized Revolving Debt Certificates of Automobile Receivables Conventional pass-throughs Fully Modified Pass-Throughs Ginnie Mae Pass Through Ginnie Mae Pass-Through GNMA Midget Gnomes Modified Pass-Throughs mortgage participation certificate pass-through certificates Pass-Through Coupon Rate pass-through securities pass-throughs Production Rate			Participating Life Insurance Policies participating mortgage Participating Policy Participating Preferred Stock participation Participation Certificate Participation Certificates Participation Loan Participation Rate parties partition partition auction Partly Taxable Pensions Partner partnership Partnership Account Partnership Agreement Party in Interest party wall Pasar a perdida Pasivo Pasivo circulante Pasivo contingente Pasivo transitorio Pass the Book Pass Through Certificate pass-through certificates Pass-Through Coupon Rate Pass-Through Rate pass-through securities Pass-Through Security pass-throughs Passed Dividend Passif a court terme Passif conditionnel Passifs transitoires Passing the Book Passive passive activity passive activity expenses passive activity income passive activity loss Passive Bond Passive Debt Passive Foreign Investment Company passive income passive income generator Passive Investing Passive Investment Management Passive Investment Strategy passive investor			Pass the Freak Out pass the hat pass the hat pass the hat pass the hat pass the hat pass the hat around pass the hat round pass the hat round pass the hat round Pass the LEED Pass The Loot Pass the Needle Through Pass the Slipped Stitch Over pass the smell test pass the time pass the time of day pass the time of day pass the time of day pass the time of day pass the time of day pass the torch pass the torch pass the torch pass the torch pass the torch pass through pass through pass through pass through Pass Through Certificate Pass Through Certificates Pass Through Coupon Rate Pass Through Coupon Rates pass through mind Pass Through Price Pass Through Rate Pass Through Rates Pass Through Securities Pass Through Security Pass Throughs pass time pass time pass time in idleness pass title pass to pass to Pass to Air Defense Radar pass to another pass under pass under review pass unfavorable judgment upon pass up pass up pass up pass up pass up pass upon pass upon pass upon pass upon

Pass-Through Security (redirected from Pass Through Certificate)

Pass-Through Security
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