Principal Only

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Principal Only

Describing a derivative in which the underlying assets are the future principal payments on a pool of mortgages or other debt obligations. Principal-only derivatives are issued at a deep discount to their par value; that is, one buys such derivatives for an amount less than the principal payments to which the holder is entitled. The gain on a principal-only derivative comes from the amount by which principal payments exceed the amount that the holder pays for the security. For that reason, holders of these derivatives can benefit from prepayment risk because when property owners repay their mortgages more quickly, principal-only derivative holders receive their returns more quickly.

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agency Annuity Principal Half-Life interest-only loan negative amortization PO principal Principal Amount principal and interest payment Principal Exchange-Rated-Linked Securities principal residence Principal-Only Remaining Principal Balance self-amortizing mortgage Separate Trading of Registered Interest and Principal of Securities			Prime-Rate Fund Primeiro a entrar, primeiro a sair Primeiro a entrar, ultimo a sair Primera fecha de rescate Primeras entradas, primeras salidas Primeras entradas, ultimas salidas Primitive Security Primo entrato, primo uscito Prince Edward Island Dollar Prince Edward Island Pound principal Principal Amount principal and interest payment principal balance principal broker Principal de la dette Principal Exchange Rate Linked Security Principal Exchange-Rate-Linked Security Principal Exchange-Rated-Linked Securities Principal Finance Principal Finance Officer Principal Investing principal limit Principal Market principal meridian Principal Only Principal Order Principal Payments Principal Place of Business principal residence Principal Risk Principal Stockholder principal trade Principal, Interest, Taxes, and Insurance principal, interest, taxes, and insurance payment Principal-agent relationship Principal-Only principal-only securities Principal-Protected Note Principal-Protection Fund Principes comptables generalement reconnus Principio accelerador Principio da combinacao Principio da equivalencia Principios de contabilidad generalmente aceptados Principios de contabilidade geralmente aceitos principle of anticipation principle of balance Principle of Diversification Print Print Advertising Weight			principal moments Principal moments of inertia Principal moments of inertia Principal Mortgage Insurance Principal Multi-Component Spectral Estimation Principal Name in Microsoft-Standard Form Principal Naval Architect Principal Network Design Engineer Principal Neutralizing Domain Principal Non-Industrial Superannuation Scheme principal normal principal normal indicatrix principal normal section principal nursing officer Principal obligation Principal of a quadric Principal of equivalence Principal of equivalence Principal of relativity Principal of relativity Principal of the Year Principal Office for Asia and the Pacific principal officer Principal Officer Health Liaison Principal Official Responsible for Acquisition Principal Official Veterinary Surgeon Principal Officials Accountability System Principal Only principal operational interest Principal Operations Inspector principal optic axis Principal Order Principal Orders Principal Organic Dangerous Constituent Principal Organic Hazardous Constituent Principal Outer Membrane Protein principal parallel Principal part Principal part principal parts Principal Payments Principal Period of Operation principal person principal piece principal piece principal piece principal piece principal piece principal place of business principal place of business principal place of business Principal Place of Residence principal plane principal plane principal plane principal plane of stress principal plane radiographic beam Principal Planning Agent

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