pass-through

pass-through
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. Each investor's pro rata share of interest and principal is remitted to the investor, "passed through," by an agent. American Banker Glossary

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pass-through ˈpass-through noun [countable, uncountable]
1. FINANCE an arrangement where payments on particular home loans are sent by the lender to a financial institution that has sold Mortgage-Backed Securities based on these loans. Mortgage-backed securities are bonds where interest payments on loans are used to pay interest to investors who have bought the bonds, and to repay the bonds when they mature (= reach the time when they must be repaid):

• $200 million of mortgage pass-through certificates (= bonds ) was underwritten by Shearson Lehman Hutton Inc.

2. COMMERCE ECONOMICS the act of increasing prices because costs have increased ; = pass-along AmE:

• the price pass-through for gasoline

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pass-through UK US noun
[C or U] (also pass-along) COMMERCE an increase in the price a customer pays because of an increase in a company's costs: »

Despite the increased price of raw materials, we want to avoid pass-through or we risk losing customers.

[C] (also pass-through security) FINANCE an arrangement in which a financial organization buys loans from a bank and sells bonds representing these loans to investors. The payments on the loans are then used to pay interest to the investors and pay back the bonds: »

A trader of 30-year pass-throughs said volume for the day at his firm was about $50 million.


Financial and business terms. 2012.

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Look at other dictionaries:

  • pass-through — pass′ through or pass′through n. 1) cvb a windowlike opening, as one for passing food or dishes between a kitchen and a dining area 2) cvb a place through which one passes or is obliged to pass • Etymology: 1950–55 …   From formal English to slang

  • pass through … — ˌpass ˈthrough… derived to go through a town, etc, stopping there for a short time but not staying • We were passing through, so we thought we d come and say hello. Main entry: ↑passderived …   Useful english dictionary

  • pass through — index endure (suffer), perambulate, permeate, pervade, traverse Burton s Legal Thesaurus. William C. Burton. 2006 …   Law dictionary

  • pass-through — ☆ pass through [pas′thro͞o΄ ] n. an opening in a wall, as between a kitchen and dining room, often with a shelf, as for passing food …   English World dictionary

  • pass through — verb 1. make a passage or journey from one place to another (Freq. 18) The tourists moved through the town and bought up all the souvenirs; Some travelers pass through the desert • Syn: ↑transit, ↑move through, ↑pass across, ↑pass over •… …   Useful english dictionary

  • pass-through — /pas throoh , pahs /, n. 1. a windowlike opening, as one for passing food or dishes between a kitchen and a dining area. 2. a place through which one passes or is obliged to pass: Motorists used the park as a pass through. The new gate will be a… …   Universalium

  • pass through — phrasal verb [intransitive/transitive] Word forms pass through : present tense I/you/we/they pass through he/she/it passes through present participle passing through past tense passed through past participle passed through pass through something… …   English dictionary

  • pass through — phr verb Pass through is used with these nouns as the subject: ↑current, ↑pipe, ↑pipeline, ↑ray, ↑ripple, ↑route, ↑shudder Pass through is used with these nouns as the object: ↑airport, ↑gut, ↑immigration, ↑ …   Collocations dictionary

  • Pass-Through Certificates — (PTCs) are instruments that evidence the ownership of two or more Equipment Trust Certificates. In other words, Equipment Trust Certificates may be bundled into a pass through structure as a means of diversifying the asset pool and/or increasing… …   Wikipedia

  • pass-through security — UK US noun [C] FINANCE ► PASS THROUGH(Cf. ↑pass through) …   Financial and business terms

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