Pass through securities

Pass through securities | Definition

Undivided interests in pools of mortgages. 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. This results in an uneven cash flow because of prepayments caused by foreclosures or delinquent payments. Pass-through securities are also offered by private organizations.

For over 1,000 additional terms and definitions please see our Investment Glossary Guide.

Related to Pass through securities:

Tags: Pass through securities, Mortgage Pass through securities, Pass through securities Definition, What are Pass through securities?, Mortgages, Securities, Real Estate Pass through securities

Disclaimer

The content of this blog is in no way a means of financial advice or a solicitation to sell any investment or product. This website is for informational purposes only and is not to be construed as a solicitation or an offer to buy or sell any securities or related financial instruments nor an endorsement of any particular investment advisor firm or individual.

No warranty or guarantee of any kind, expressed or implied, is given regarding the accuracy, reliability, veracity, or completeness of the information provided here or by following links from this or any other page within this site, and under no circumstances will the author or service provider be held responsible, or liable for errors, or omissions resulting in any loss or damage caused or alleged to be caused by information contained in the material presented on the site, including but not limited to direct, indirect, incidental, special or consequential damages caused by using the information.

Richard C. Wilson's Blog