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Financial Terms | |
Modified pass-throughs |
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Definition of Modified pass-throughsModified pass-throughsAgency pass-throughs that guarantee (1) timely interest payments and (2) principal
Related Terms:Fully modified pass-throughsAgency pass-throughs that guarantee the timely payment of both interest and Agency pass-throughsMortgage pass-through securities whose principal and interest payments are Conventional pass-throughsAlso called private-label pass-throughs, any mortgage pass-through security not First-pass regressionA time series regression to estimate the betas of securities portfolios. MACRS (Modified Accelerated Cost Recovery System)A depreciation method created by the IRS under the Tax Reform Act of 1986. Companies must use it to depreciate all plant and equipment assets installed after December 31, 1986 (for tax purposes). Modified Accelerated Cost Recovery System (MACRS)Depreciation method that allows higher tax deductions in early years and lower deductions later. Modified durationThe ratio of Macaulay duration to (1 + y), where y = the bond yield. modified duration is ![]() Modified durationThe Macaulay duration discounted by the per-period modified FIFO method (of process costing)the method of cost assignment that uses FIFO to compute a cost per Mortgage pass-through securityAlso called a passthrough, a security created when one or more mortgage Pass-through coupon rateThe interest rate paid on a securitized pool of assets, which is less than the rate Pass-through rateThe net interest rate passed through to investors after deducting servicing, management, Pass-through securitiesA pool of fixed-income securities backed by a package of assets (i.e. mortgages) Passive investment managementBuying a well-diversified portfolio to represent a broad-based market Passive investment strategySee: passive management. Passive portfolioA market index portfolio. Passive portfolio strategyA strategy that involves minimal expectational input, and instead relies on Private-label pass-throughsRelated: Conventional pass-throughs. Second pass regressionA cross-sectional regression of portfolio returns on betas. The estimated slope is the Related to : financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit. |