Pass-through coupon rate

Pass-through coupon rate

The interest rate paid on a securitized pool of assets, which is less than the rate paid on the underlying loans by an amount equal to the servicing and guaranteeing fees.

Pass-Through Coupon Rate

The interest rate a holder receives on a pass-through security. A pass-through security is a negotiable security backed by the receivables on a pool of liabilities like loans or mortgages. The pass-through coupon rate is the same as the weighted average interest rate on the liabilities underlying the security, less any applicable fees.
References in periodicals archive ?
Pass-through coupon rates range mostly between 5 percent and 15 percent, and their expected average lives run from shorter than one year to longer than twelve years.