A mortgage-backed or other pass-through security that is not guaranteed by a U.S. Government agency such as Freddie Mac or Ginnie Mae. Until the early 2000s, such securities needed a third-party guarantee or other credit enhancement in order to receive a triple-AAA credit rating. At the beginning of the 2000s, more private-label pass-throughs, especially subprime mortgage-backed securities, began to be issued. Many of these defaulted starting in early 2007, causing a global liquidity crisis. It is also called a conventional pass-through. See also: Credit crunch.
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