Principal Payments Assuming
100% PSA and 250% PSA
Exhibit 1
Principal payments-both scheduled payments and prepayment-are indicated for the mortgage pass-through collateral assuming 100% and 250% PSA.
A tranche class offered by some CMOs that has a sinking fund schedule and an ability to make principal payments that are not subordinated to other classes. Pacific Stock Exchange Used for listed equity securities.
Self-amortizing mortgage Mortgage whose entire principal is paid off in a specified period of time with regular interest and principal payments.
Cash flow coverage ratio The number of times that financial obligations (for interest, principal payments, preferred stock dividends, and rental payments) are covered by earnings before interest, taxes, rental payments, and depreciation.
Debt service coverage The ratio of cash flow available to the borrower to the annual interest and principal payments on a loan or other debt.
debt service A series of periodic interest and principal payments on a debt. debt service coverage A measure of a company's or individual's ability to repay debt. Debt service...
National Mortgage Association Ginnie Mae pass-through A security guaranteed by the Government National Mortgage Association that is backed by a collection of mortgages, in which the investor receives the interest and principal payments of ...
General obligation bond (GO) A municipal debt obligation in which interest and principal payments are guaranteed by the full financial resources and taxing power of the issuer. Ginnie Mae 1. Government National Mortgage Organization (GNMA).
Table 2 shows series of bonds and CDs with staggered maturities whose coupon and principal payments will match the stream of income shown in the Target Cash Flows column in Table 1 (rates are fictitious for this example).
Usually, but not always, the obligation in question is a requirement to make interest or principal payments. Sometimes called default risk, the failure to make required payments reduces the value of equity securities, debt securities, and loans.
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. Related: fully modified pass-throughs Modigliani and Miller Proposition I ...
AVERAGE LIFE - With respect to an issue of bonds, the weighted period of time required to repay half of the issue through scheduled principal payments (e.g., maturity, sinking fund redemption, etc.).
Principal payments are grouped together to make large denomination securities, and interest payments grouped with other interest payments of the same date to make other large securities, which are then sold to investors in smaller denominations.
Refers to the borrower's ability to make interest and principal payments on debts. See: Fixed charge coverage ratio.
Waterfall Payment - A type of payment scheme in which higher-tiered creditors receive interest and principal payments, while the lower-tiered creditors receive only interest payments.
in judging whether a national debt is large or small, one ought to compare it to the income (or product) of the national economy because that income, through taxation or further borrowing, is the ultimate source of interest and principal payments on ...
A type of payment scheme in which higher-tiered creditors receive interest and principal payments, while the lower-tiered creditors receive only interest payments.
The CCF program allows a taxpayer to use CCF money to make principal payments on the debt of Schedule B vessels up to the lesser of mortgage balance or depreciable basis at the beginning of the tax year.
For example, if a company has a bank loan of $50,000 that requires monthly interest and principal payments, the next 12 monthly principal payments will be the current portion of the long-term debt.
An insured bond is a municipal bond whose interest and principal payments are guaranteed by a triple-A rated bond insurer.
This factor reflects any accretions in part due to negative amortization, any ordinary principal payments and accelerated principal payments.
In the third stage of the credit cycle, many borrowers can service neither interest nor principal payments from cash flows. The prices of the assets they invested in must rise to enable them to keep refinancing their debts.
principal payments are directed to the sinking fund on a priority basis in accordance with a predetermined
payment schedule, with prior claim to the cash flows before other CMO classes. Similarly, cash flows ...
The risk that the ability of an issuer to make interest and principal payments will change because of rare, discontinuous, and very large, ...
Duration is the time, measured in years, in which a bond investor will receive the present value of future interest and principal payments.
Debt service coverage ratio = [Net Income + Depreciation/Amortization + Interest Expense]/[Interest Expense + Principal Payments].
For real estate loans, ...
ABILITY TO PAY - Refers to the borrower's ability to make interest and principal payments on debts. In ...
ABLE - Quite literally, being capable. A Purchaser is ready, willing and able to complete a transaction...
ABM - see ACTIVITY BASED MANAGEMENT.
The sponsoring organizations, for example, the Government National Mortgage Association (GNMA) passes through interest and principal payments to the certificate holders as these payments are received on a monthly basis.
The number of times that financial obligations (for interest, principal payments, preferred stock dividends, and rental payments) are covered by earnings before interest, taxes, rental payments, and depreciation.
Cash Flow From Operations ...
Bi Weekly Mortgage Loan definition :
A mortgage loan on which interest and principal payments are made every half-month (total of 26 payments) as opposed to monthly payments. This results in earlier loan retirement.
TSCTrade.com ...
A stipulation in a municipal charter stating that each year's interest and principal payments on municipal debt must be relatively equal. This attempts to make it easier to project the amount of tax revenue needed to meet obligations.
The principal payments from the underlying pool of pass-through securities are used to retire the bonds on a priority basis as specified in the prospectus. Related: mortgage pass-through security ...
5) Yield-to-Maturity (YTM): The yield to maturity is the interest rate that brings a bond's original value, principal payments and interest payments into equilibrium.
Sinker
Definition: [crh] A bond with interest and principal payments coming from the proceeds of a Definition: ?rd=sinking+fund"sinking fund.
A grading of a bond issuer's ability to meet scheduled interest and principal payments.
Bottom
The lowest value to which the stock market or a particular stock will fall.
LEVEL DEBT SERVICE " Yearly interest and principal payments which remain relatively constant for the life of the bond issue.
The fund helps to 'pay off' the debt issue over the term of the issue and can be compared to principal payments made by a mortgage holder.
Credit Risk
The risk that the issuer of a security, such as a bond, may default on interest and/or principal payments or become bankrupt. If either event occurs, the investor stands to lose part or all of the investment.
See: Default ...
Great care is needed to correctly identify unique current liabilities, such as upcoming principal payments on long-term loans. Other challenges arise in reporting currently maturing debt subject to refinancing.
derivative zero: A zero-coupon bond created by stripping coupon and principal payments from a U.S. Treasury security.
devaluation: Lowering of the value of a country's currency relative to gold or the currencies of other nations.
Zero coupon bonds created by stripping coupon and principal payments from a U.S. Treasury Security.
Derivatives ...
"Paying off debt" over the term of the issue is similar to a mortgage holder paying off the principal payments of a mortgage, thereby reducing debt.
Sponsors Center
Sponsored Links ...
A security backed by a pool of pass-through rates , structured so that there are several classes of bondholders with varying maturities, called tranches. The principal payments from the underlying pool of pass-through securities are used to retire ...
On adjustable-rate mortgages, if the monthly payments are not enough to cover both the interest and principal payments on the loan, the shortage is added to the principal.
Debt Service
Cash required by a corporation or municipality to cover all interest and principal payments due in a given year, including sinking fund payments.
If your mortgage is paid off early (perhaps because you sell the home, refinance to get a lower interest rate, or make enough extra principal payments to retire the loan), ...
The amount of cash remaining in a business after costs, interest and principal payments are made.
Non-compete Clause ...
In most instances, the debtor makes regular interest and principal payments during the interim. In contrast, investors purchase long-term debt, such as Treasury bonds, which mature in excess of ten years, usually for income and safety purposes.
Solvency ratios are ratios designed to assess the ability of a company to make both the interest and principal payments on its long-term obligation.
Sophisticated preparers ...
Rating: A rating assigned to debt securities by independent rating services based on the issuer's ability to meet interest and principal payments.
Bonds issued by a crown corporation but guaranteed by the applicable government as to interest and principal payments.
Guaranteed Income Supplement (GIS)
A pension payable to OAS recipients with no other or limited income.
The interest and principal payments made by the debtor flow through the intermediary, who pays them to the investor net of service fees.
Rescheduling may take the form of an extension of the debt maturity date, delayed loan principal payments, reduction of the interest rate, transformation of short-term credits into medium- or long-term lending, etc.
The sale of (or, to sell) new securities to raise funds. The price at which the securities are sold is the issue price, and the entity that sells them (and in the case of bonds is responsible for meeting interest and principal payments) is the issuer.
Mortgage-backed securities known as Collateralized Mortgage Obligations (CMOs) or Real Estate Mortgages Investment Conduits (REMIC) are structured differently. While a CMO or REMIC pays interest on a regular basis, the principal payments are ...
The rights of the bondholder are subordinated to senior debt holders. Assurance of interest and principal payments in the future is limited. Repayment often depends on asset sales rather than on the ongoing profitability of the business.
So you want to make sure the issuer will pay you back, and with interest. Credit quality can be a valuable tool in making that assessment because it refers to the ability of the issuer to make interest and principal payments in full and on time.
However, you may not be able to make the spread in cash. The mortgage will require principal payments as well and so you may not realize the profit in cash until you ultimately sell the investment(s) and pay off the mortgage in say five years.
Double-up: You can double-up your interest and principal payments any month or every month.
Skip-a-payment: If you are short of the mortgage payment you may skip a payment, If you have used the double-up option you may reverse the payments.
In the US, this refers to a bond that is secured by a blanket mortgage on the issuing company's property, though it may be outranked by one ...(Read more)
General Obligation Bond
A municipal bond whose interest and principal payments are ...
 See also: Expense, Banks, Prepayment, Funding, Bills
  
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