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

Explain firm determines the optimal level of current assets, Explain how a ...

Explain how a firm determines the optimal level of current assets. The optimal level of working capital is defined by finding the amount that balances the requirement for liquidi

Analysis on the stocks, Yellow: is the company which their stock performanc...

Yellow: is the company which their stock performance was forecasted by analyst Blue: is the name of the company which made the recommendation by the analyst who work for it R

Explain difference among economic profit & producer surplus, What is the di...

What is the difference between economic profit and producer surplus? When economic profit is the difference among total revenue and total cost, producer surplus is the variatio

Examine about the risk-based auditing, Examine about the Risk-based auditin...

Examine about the Risk-based auditing A risk based audit will be reviewing the risk management process and considering main risks of the organisation as a whole. Risk manage

Why we measure a project''s risk as the change in the cv, Explain why we me...

Explain why we measure a project's risk as the change in the CV. We compute a project's risk as the change in the coefficient of variation for the reason that this focuses on t

How cash flow problems arise, Q. How cash flow problems arise? It is si...

Q. How cash flow problems arise? It is significant first to distinguish between profitability and cash availability. The key scheme relates to insolvency since even profitable

Stakeholder vs shareholder approach, QUESTION 1 (a) What do you underst...

QUESTION 1 (a) What do you understand by the term Civil Society Organisations? (b) Distinguish between sectional and promotional groups. Give examples to support your answer

Irr, #question how to collect real irr %..

#question how to collect real irr %..

Laspeyres method, Laspeyres Method Laspeyres method uses the quantities...

Laspeyres Method Laspeyres method uses the quantities consumed during the base period in computing the index number. This method is also the most commonly used method which inc

Interest rates over the business cycle, Interest rates are the key de...

Interest rates are the key determinants of business cycles in emerging market countries. In the past, several economies had experienced frequent and great changes

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