genuinecfa

Not really sure what you're talking about with 'Paythrough', but my understanding was that there are two types of MBS'.

1) Passthrough: Where all the payments are passed through as they are to the investors. So every investor has the same prepayment risk. i.e there is no 'tranching'

2) Traching : Different Tranches have different risks...PAC's, Sequential, IO's, PO's etc..



Edited 1 time(s). Last edit at Friday, June 3, 2011 at 11:31AM by deepstack31.