pay thru vs pass thru

CFA Level II
#1

whats the difference? in a pass-thru structure, the SPV charges a servicer fee and the pay thru doesnt?

#2

The difference is fees? Pay through has tranched protection.

#3

http://www.analystforum.com/phorums/read.php?12,542995 check this out.

#4

thanks.

#5

very helpful.

#6

btw i work in mbs strategy and nobody calls anything “pay thru”

#7

mike0021 Wrote: ------------------------------------------------------- > btw i work in mbs strategy and nobody calls > anything “pay thru” I think we should ask you everyday if this statement is still true (the first part, not second).

#8

zing

#9

common misconception – not all mbs are subprime cr@p. plenty of good quality agency mortgages that provide value and are not blowing up. plenty of institutional interest, always has been, always will be. agency mbs market is probably 10x bigger than what was once the subprime rmbs market. in fact, my group had a good year last year, and an OK start to 08

#10

No doubt, it was meant mostly tongue in cheek. Most MBS products are very well designed and do exactly as they were intended…unfortunately the sub prime cr@p shouldn’t have been brought to market with the same structure/pricing models. We have been searching around for deals, but the good paper is still holding good value.