Pass-through coupon rate

Definition:

The interest rate paid on a securitized pool of assets, which is less than the rate paid on the underlying loans by an amount equal to the servicing and guaranteeing fees.

Investing Essentials


Copyright © 2011 Campbell R. Harvey, Professor of Finance, Fuqua School of Business at Duke University

Term of the Day

Manufacturing ISM Report on Business

A monthly report released by the Institute for Supply Management measuring growth in the manufacturing sector.

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