principal-only securities


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principal-only securities (POS)

Collateralized mortgage obligations issued by the Government National Mortgage Association (Ginnie Mae) that have been stripped out into bonds based only on interest payments (interest-only securities) and those based solely on principal payments (principal-only securities).

References in periodicals archive ?
The types of classes that make up the portfolio are: stripped principal-only securities, planned amortization class (PAC) principal-only securities with and without effective prepayment bands, PAC IOettes (high coupon, small principal) without effective bands and inverse floating rate securities.
The types of classes that make up the portfolio are: planned amortization class (PAC) bonds both with and without effective bands, PAC principal-only bonds, companion principal-only securities, PAC IOettes (high coupon, small principal) without effective bands, level 3 targeted amortization class (TAC) IOettes, accretion directed IOettes, companion IOettes, interest- only strips, and inverse floating rate interest-only securities.

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