Pass-Through RateOriginal FaceOriginal Issue Discount - OIDOvercollateralization - OCOrdinary Annuit

外汇网2021-06-19 20:53:21 125

The rate on a securitized asset pool - such as a mortgage-backed security (抵押贷款支持债券) - that is "passed-through" to investors once management fees and guarantee fees have been paid to the securitizing corporation. The pass-through rate (also known as the coupon rate for the 抵押贷款支持债券) will be lower than the interest rate on the inpidual securities within the offering.

|||For example, suppose that an agency takes two million dollars' worth of mortgage loans, each of which pays 6% interest, and turns them into a 5.5% mortgage-backed security. The 5.5% reflects the pass-through rate, and the agency takes the remaining 0.5% as a cut of the proceeds.

The largest issuers of securitized assets are the Sallie Mae, Fannie Mae and Freddie Mac corporations. While these companies are for-profit business, their guarantees are backed by the U.S. government, giving them high credit ratings.

Pass-Through RateOriginal FaceOriginal Issue Discount - OIDOvercollateralization - OCOrdinary Annuit

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