scarecrow

from my notes:

Passthrough vs Paythrough Structure
ABSs can have passthrough or paythrough structures.

Passthrough: cash flows generated by the underlying asset pool are paid, pro rata, to the investors
Paythrough: the CFs are distributed according to what tranche an investor went with. The same asset pool can allow securities with varying risks to be created from it.

so I understand this to mean that paythrough is just a passthrough that gets tranched up.

scarecrow

i dunno, that's just what's there, so I trust it



Edited 1 time(s). Last edit at Friday, June 3, 2011 at 01:37PM by magicskyfairy.