Pass-through security

What is Pass-through security?

Pass-through security meaning in finance terminology / glossary / dictionary is:
A pass-through security is an ownership share in a pool of income-producing assets, such as conforming, federally insured mortgage loans. As income is generated from the underlying loans, it’s forwarded (i.e., passed through) from the lender to the issuing agency to the certificate holders.

 

reference: MortgageLoan.com

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