State the term- pass through certificates, Financial Management

Assignment Help:

State the term- Pass Through Certificates (PTCs)

Pass through Certificates (PTCs) are debt securities which pass through income from debtors through intermediaries to investors. Primarily banks who have a strong retail loan portfolio are the intermediaries who issue these certificates. The most common form if pass through is mortgage backed security, in which principal and interest payment from home loan (or car loan) takers are passed from banks or savings agencies that pool and repackage them in the form of securities, to investors. The bank which collects payments from debtor's charges a fee from its services, which is deducted from income passed on to investors. These securities are credit rated and interest payment is according to rating. Rating (i.e. P1+) is followed by (So) to denote the transaction is that of securitization.

 


Related Discussions:- State the term- pass through certificates

Calculate the present price of the stock, Company Z has just been organized...

Company Z has just been organized. It is expected to experience zero growth next year and grow at a 10% rate in year 2.  Beginning in the third year the company should attain a 5%

What is rectification of errors, Principles of Financial Accounting and Man...

Principles of Financial Accounting and Management 1. Define Accounting. Briefly explain the ‘Entity Concept' and ‘Money Measurement Concept' of accounting. 2. What is rectif

Treasury auction process, All treasury securities are issued on the b...

All treasury securities are issued on the basis of auction. The auction process is computerized and hence qualified broker-dealers can access it electronically. T

What number of seats generates that maximum revenue, Q. In planning a resta...

Q. In planning a restaurant, it is estimated that a revenue of $6 per seat will be realized if the number of seats is at most 50. On the other hand, the revenue on each seat will d

Project budgets and reporting systems, Project Budgets and Reporting System...

Project Budgets and Reporting Systems: In many cases, where a project is initiated and a budget allocated, a separate account is created to ensure costs attributable to that pr

Determine the meaning of reportable segments, Determine the meaning of Repo...

Determine the meaning of Reportable segments Reportable  segments  are  operating  segments  or  aggregations  of  operating  segments  which meet specified criteria(core princ

Describe the balance of payments identity, Describe the balance of payments...

Describe the balance of payments identity and discuss its implications under the fixed and flexible exchange rate regimes. Answer:  The balance of payments recognize holds that t

What is a financial ratio, What is a financial ratio? A financial rati...

What is a financial ratio? A financial ratio is a number that convey the value of one financial variable relative to another.  Put more easily, a financial ratio is the final

The us pension fund system, The US Pension Fund System The US corporate...

The US Pension Fund System The US corporate pension system has matured along with the country's demographic cycle. It consists of both defined benefit plans and defined contrib

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd