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Pool factor

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Definition of Pool factor

Pool Factor Image 1

Pool factor

The outstanding principal balance divided by the original principal balance with the result
expressed as a decimal. pool factors are published monthly by the Bond Buyer newspaper for Ginnie Mae,
Fannie Mae, and Freddie Mac(Federal Home Loan Mortgage Corporation) MBSs.



Related Terms:

Amortization factor

The pool factor implied by the scheduled amortization assuming no prepayemts.


Reported factor

The pool factor as reported by the bond buyer for a given amortization period.


ADF (annuity discount factor)

the present value of a finite stream of cash flows for every beginning $1 of cash flow.


Annuity factor

Present value of $1 paid for each of t periods.


annuity factor

Present value of an annuity of $1 per period.



Conversion factors

Rules set by the Chicago Board of Trade for determining the invoice price of each
acceptable deliverable Treasury issue against the Treasury Bond futures contract.


Cost pool

The costs of (cross-functional) business processes, irrespective of the organizational structure of the business.


Pool Factor Image 2

cost pool

a collection of monetary amounts incurred either
for the same purpose, at the same organizational level, or
as a result of the occurrence of the same cost driver


Cost pool

A cluster of cost items.


critical success factors (CSF)

any item (such as quality, customer
service, efficiency, cost control, or responsiveness
to change) so important that, without it, the organization
would cease to exist


Discount factor

Present value of $1 received at a stated future date.


discount factor

Present value of a $1 future payment.


Factor

A financial institution that buys a firm's accounts receivables and collects the debt.


Factor

An agent who buys and sells goods on behalf of others for a commission.


Factor analysis

A statistical procedure that seeks to explain a certain phenomenon, such as the return on a
common stock, in terms of the behavior of a set of predictive factors.


Factor model

A way of decomposing the factors that influence a security's rate of return into common and
firm-specific influences.


Factor of Production

A resource used to produce a good or service. The main macroeconomic factors of production are capital and labor.


Factor portfolio

A well-diversified portfolio constructed to have a beta of 1.0 on one factor and a beta of
zero on any other factors.



Factoring

Sale of a firm's accounts receivable to a financial institution known as a factor.


Factoring

The sale of accounts receivable to a third party, with the third party bearing
the risk of loss if the accounts receivable cannot be collected.


Factoring

The discounting, or sale at a discount, of receivables on a nonrecourse, notification
basis. The purchaser of the accounts receivable, the factor, assumes full risk of collection and
credit losses, without recourse to the firms discounting the receivables. Customers are notified to
remit directly to the factor.


Factoring

Type of financial service whereby a firm sells or transfers title to its accounts receivable to a factoring company, which then acts as principal, not as agent.


Factory overhead

All the costs incurred during the manufacturing process, minus the
costs of direct labor and materials.


Interest Factor

Numbers found in compound interest and annuity tables. Usually called the FVIF or PVIF.


Limiting factor

The production resource that, as a result of scarce resources, limits the production of goods
or services, i.e. a bottleneck.


Maturity factoring

factoring arrangement that provides collection and insurance of accounts receivable.


Multifactor CAPM

A version of the capital asset pricing model derived by Merton that includes extramarket
sources of risk referred to as factor.


Multiple-issuer pools

Under the GNMA-II program, pools formed through the aggregation of individual
issuers' loan packages.



Net benefit to leverage factor

A linear approximation of a factor, T*, that enables one to operationalize the
total impact of leverage on firm value in the capital market imperfections view of capital structure.


Old-line factoring

factoring arrangement that provides collection, insurance, and finance for accounts receivable.


One-factor APT

A special case of the arbitrage pricing theory that is derived from the one-factor model by
using diversification and arbitrage. It shows the expected return on any risky asset is a linear function of a
single factor.


Pooling of interests

An accounting method for reporting acquisitions accomplished through the use of equity.
The combined assets of the merged entity are consolidated using book value, as opposed to the purchase
method, which uses market value. The merging entities' financial results are combined as though the two
entities have always been a single entity.


Pooling of interests

An method for accounting for a business combination. When used, the expenses of the combination are charged against income at once, and the net
income of the acquired company is added to the full-year reported results of the acquiring company.


PPF (periodic perpetuity factor)

a generalization formula invented by Abrams that is the present value of regular but noncontiguous cash flows that have constant growth to perpetuity.


Present value factor

factor used to calculate an estimate of the present value of an amount to be received in
a future period.


Scrap factor

An anticipated loss percentage included in the bill of material and
used to order extra materials for a production run, in anticipation of scrap losses.


Shrinkage factor

The expected loss of some proportion of an item during the
production process, expressed as a percentage.


Single factor model

A model of security returns that acknowledges only one common factor.
See: factor model.


Two-factor model

Black's zero-beta version of the capital asset pricing model.


Weighted average coupon

The weighted average of the gross interest rate of the mortgages underlying the
pool as of the pool issue date, with the balance of each mortgage used as the weighting factor.


Weighted average maturity

The WAM of a MBS is the weighted average of the remaining terms to maturity
of the mortgages underlying the collateral pool at the date of issue, using as the weighting factor the balance
of each of the mortgages as of the issue date.



 

 

 

 

 

 

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