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 the methods used to treat the obsolete stock, Explain the methods u...

Explain the methods used to treat the obsolete stock Review Inventory for obsolete items Make materials review board Include an obsolescence review in the closing p

Gordon`s dividend capitalisation model , Considering the following informat...

Considering the following information, what is the price of the share as per Gordon’s Model? Details of the Company Net sales Rs.120 lakhs Net profit margin 12.5% Outstandin

Evaluation and assessing probability of management risk, Evaluation: On...

Evaluation: Once all the possible events are identified, the next step in the risk management process is to evaluate the events. As stated previously, the evaluation process wo

CASELET, Prepare your recommendation on Agarwal Cast Company

Prepare your recommendation on Agarwal Cast Company

Theories of the term structure, There are two important term structur...

There are two important term structure theories related to the shapes of the yield curve. First is the Expectations Theory and the second is Market Segmentations

What interest rate is required to yield a balance, You invest $1,000 at an ...

You invest $1,000 at an annual interest rate of 5% compounded continuously. How much is your balance after 8.5 years?  How long will it take you to accrue a balance of $4,000? What

How to calculate rate of return?, Illustration Consider a Rs.1,00...

Illustration Consider a Rs.1,000 par value bond whose current market price is Rs.850. The bond carries a coupon rate of 8% and has a maturity period of 9 years. Wha

Problem in computation of retained earnings, Q. Problem in computation of r...

Q. Problem in computation of retained earnings ? Problem in computation of retained earnings: it is sometimes argued that retained earning do not involve any costs. But in the

Define a tax create a deadweight loss, Why does a tax create a deadweight l...

Why does a tax create a deadweight loss?  What determines the size of this loss? A tax makes deadweight loss by artificially increasing price above the free market level, so de

Buy down loans, The buy down loan is similar to the PAM; however, it ...

The buy down loan is similar to the PAM; however, it is the seller of the property and not the buyer/borrower who places cash in a segregated account so that additional

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