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Business  Passive portfolio strategy  Pass-through 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.
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pass-through contributions
Contributions collected by Charity #1 who is merely acting as a collection agent for Charity #2. Also known as flow-through contributions.
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International economists usually call pass-through period the interval within which the domestic price of foreign goods adjusts to the exchange rate changes.

pass-through security

Security, backed by a pool of mortgage loans or other debt instruments, that provides the holder with the cash flow from the mortgage/debt payments.

operating expenses that can be charged to the tenant along with the usual rent , as defined in the lease .
Example: Common pass-throughs in commercial leases are tax stops , stopclauses , and Common Area Maintenance (CAM) .

Pass-through security
Pass-through security refers to a type of security where a group of individual debt obligations from several institutions are combined by a governing body.

Agency Pass-Throughs
Business / Finance / Agency Pass-Throughs: Mortgage pass-through securities whose principal and interest payments are guaranteed by government agencies, such as the Government National Mortgage Association (Ginnie Mae), ...

Agency pass-throughs
Mortgage pass-through securities whose principal and interest payments are guaranteed by government agencies, such as the Government National Mortgage Association (" Ginnie Mae "), ...

Modified pass-throughs
Definition: [crh] Agency pass-throughs that guarantee (1) timely interest payments and (2) Definition: principal"principal payments as collected, but no later than a specified time after they are due.

Pass-Through Rate
Pass-Through Rate Rate of interest that is actually payable to investors after the advertised mortgage coupon rate is adjusted with fees for management, servicing and guarantee.

pass-through A security issued by a special purpose vehicle that pays investors whatever net cash flows the special purpose vehicle's assets generate.
passive investing Investing in such a way as to mirror the holdings of some benchmark.

The original type of MBS structure. In a pass-through, investors own a pro rata claim to the cash flows from the pool of underlying mortgages.

Pass-through operations (also called transshipments) involve a foreign country's use of one country in a trade bloc as a means of gaining preferential treatment from other countries in the bloc.
See: Transshipment.

Pass-Through Taxation
Taxation in which a company's income is not taxed at the entity level. Instead the company's income or loss is "passed through" the business and reported on owners' personal tax returns.

Pass-through security: In a pass-through security, debt obligations are purchased by an intermediary who packages them into new securities backed by the pooled obligations and then sells shares in the pool in the open market.

Pass-through securities
A pool of fixed income securities backed by a package of assets (i.e., mortgages) where the holder receives the principal and interest payments. Related: Mortgage pass-through security
Passive investment management ...

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.

Pass-Through Account (in banking)
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Which of these is not a responsibility of the Federal Reserve Bank? Read answer...

Pass-Through Rate
The rate on a securitized asset pool - such as a mortgage-backed security (MBS) - that is "passed-through" to investors once management fees and guarantee fees have been paid to the securitizing corporation.

A securitization mechanism whereby the cash flows of the underlying assets are passed through, essentially unchanged (after deduction of administrative expenses) to the security holder. Traditional Ginnie Mae MBS are passthroughs.
Payee ...

A pass-through tax entity that can hold mortgages secured by any type of real property and can issue multiple classes of ownership interests to investors in the form of pass-through certificates, bonds, or other legal forms.

'N pass-through belasting entiteit wat kan hou verbande verseker deur enige vorm van vaste eiendom en reik verskeie klasse van eienaarskap belange aan beleggers in die vorm van pass-through sertifikate, effekte, of enige ander wetlike vorm.

Agency pass-throughs that guarantee the timely payment of both interest and principal. Related: modified pass-throughs
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Agency pass-throughs that guarantee (1) timely interest payments and (2) principal payments as collected, but no later than a specified time after they are due.
Mandatory redemption schedule ...

A GNMA pass-through certificate backed by fixed-rate mortgages with a 15-year maturity. GNMA Midget is a dealer term and is not used by GNMA in the formal description of its programs.
Gnomes ...

Ginnie Mae Pass-through
Definition: A security guaranteed by the Government National Mortgage Association that is backed by a collection of mortgages, ...

Related: active portfolio strategy Pass-through rate The net interest rate passed through to investors after deducting servicing, management, and guarantee fees from the gross mortgage coupon.

Fully modified pass-throughs
Agency pass-throughs that guarantee the timely payment of both interest and principal. Related: Modified pass-throughs.

The extent to which an exchange rate change is reflected in the prices of imported goods.

PASS-THROUGH ENTITY -- A nontaxable entity such as a partnership. Generally, the income or expense is passed to the underlying owner.
PATENT -- Form of intellectual property.

GNMA (Ginnie Mae) pass-through certificate
Fixed-income securities that represent an undivided interest in a pool of federally insured mortgages put together by GNMA, the Government National Mortgage Association.

Although Ginnie Mae pass-throughs have benefited the home mortgage market (increased capital available for lending), an investor's rate of principal repayment may be uncertain.

Pass-through securities backed by credit card receivables.
Carry Related:net financing cost.
Carring costs Costs that increase with increases in the level of investment in current assets.
Carrying value Book value.

Certificates of Amortized Revolving Debt (CARD)Pass-through securities backed by credit card receivables. Certificates of Automobile Receivables (CAR)Pass-through securities backed by automobile loan receivables.

The FHLMC purchases mortgages from federally insured financial institutions and resells them in the form of mortgage-backed, pass-through certificates. 2. A security issued by the FHLMC secured by pools of conventional home mortgages.

Securitization The transfer of loans (ASSETS) of a homogeneous nature, from a lending institution to investors through an intermediary, by packaging them in the form of securities which are usually termed "PASS-THROUGH SECURITIES".

Lenders argue that the real estate attorney's fee, for example, is a pass-through cost, not a cost of the lending. In effect, they are arguing that the attorney's fee is a separate transaction and not a part of the loan.

A security backed by a pool of pass-throughs, structured so that there are several Classes of bondholders with varying maturities, called tranches.

A dollar roll is a popular type of trade in the MBS pass-through TBA market.
According to forward securities pricing theory, the front month price should be higher than the back month price.

Mortgage pass-through security
Mortgage pipeline
Mortgage pool
Mortgage rate
Mortgage REIT
Mortgage servicing
Mortgage-backed securities
Mortgage-Backed Securities - MBS
Mortgage-Backed Securities Clearing Corporation
Mortgage-pipeline risk
Mortgagee ...

Halfway between a corporation and a partnership, a limited liability company allows for pass-through taxation and a less rigid structure of operating than a corporation. This entity could be an individual, partnership, or a corporation.

Securitization is the process of pooling various types of debt - mortgages, car loans, or credit card debt, for example - and packaging that debt as bonds, pass-through securities, or collateralized mortgage obligations (CMOs), ...

GNMA MIDGET - A GNMA pass-through certificate backed by fixed-rate mortgages with a 15-year maturity. G...
GNMA-I - Mortgage-backed securities (M.B.S.) on which registered holders receive separate principal and...

In addition, a limited liability company may exempt the owners from certain pass-through taxes that may be otherwise applicable. As such, a limited liability company may encompass qualities of both the partnership and a corporation.

The simplest mortgage backed security is a pass-through MBS which simply distributes received interest and repayments of principal to the holders of the security, with a deduction for a servicing fee. This usually goes to the originator.

S Corporation (Subchapter S of the Code): An incorporated business that is a "pass-through" entity for tax considerations.

These investments can be very complicated. The most basic are called pass-through participation certificates. They simply pay the holder their fair share of both principal and interest payments made on the mortgage bundle.

Government National Mortgage Association ("Ginnie Mae") A government-owned corporation that purchases mortgages and re-packages them as pass-through securities. The holder of a pass-through bond owns a portion of the underlying mortgages.

The acronym for the Government National Mortgage Association, which buys up mortgages in the secondary market and sells them to investors via securities known as pass-through certificates.
Good-till-canceled order.

A business venture, usually organized as a limited partnership, that is structured to pass-through income and "tax losses" of the underlying investments to investors. However, its use as a tax shelter has been severely reduced by tax legislation.

The term also refers to private label or agency securities, pass-throughs, or derivatives such as Collateralized Mortgage Obligations. It can refer to the Over-the-Counter options on mortgage backed securities as well.

It's the total of wages, interest, dividends, capital gains (or up to $3,000 in losses), profit or loss from real estate or pass-through entities (e.g., S corporation), ...

SUBRECIPIENT - A non-federal entity that expends federal awards received from a pass-through entity to carry out a federal program, but does not include an individual that is a beneficiary of such a program.

A distinct type of business that offers an alternative to partnerships and corporations, by combining the corporate advantages of limited liability with the partnership advantage of pass-through taxation (earnings are taxed only once) ...

See also: See also: Index, Transaction, Banks, Agency, Expense

Business  Passive portfolio strategy  Pass-through rate

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