Collateralized Debt Obligation (CDO) - InvestingAnswers
2020年9月29日 — CDOs are described as structured asset-backed securities because they pay cash flows to investors in a prescribed sequence, based on how much cash flow is collected from the package of assets owned. The CDO is split into different risk classes known as tranches.
Collateralized Mortgage Obligation (CMO) - InvestingAnswers
2019年10月1日 — A collateralized mortgage obligation (CMO) is a fixed income security that uses mortgage-backed securities as collateral. Like other structured securities, CMOs are subdivided into graduated risk classes, called tranches that vary in …
Weighted Average Maturity (WAM) Definition & Example
2020年8月21日 — The WAM can be useful to investors in bond portfolios or in securities that are backed by debt securities, such as mortgage-backed Weighted Average Maturity Calculation with Example The WAM can be calculated by determining the weight of each maturity in the average, multiplying that weight by the security’s maturity, and summing the weighted ...
Debentures Definition & Example | InvestingAnswers
2020年8月11日 — If Company XYZ is willing to pledge $100 million of its assets to the bondholders (that is, let the bondholders place liens on specific assets that they may seize in the event of default), giving them a little extra assurance that they will be paid on time, then the bonds would be considered securitized or asset-backed.
Early Call Definition & Example - InvestingAnswers
2020年9月29日 — Most rating agencies requier asset-backed securities to disclose early call provisions when they rate the debt. Though this lowers the risks associated with asset-backed securities, early calls contain risks. An investor may not earn all the interest promised over the life of the security if an early call happens.
Pass-Through Security Definition & Example - InvestingAnswers
2019年10月1日 — Mortgage-backed securities (MBS) are some of the most common pass-through securities. To get a feel for how the 'pass-through' in Pass-Through Securities works, let's take a closer look at MBS. Step 1: Pool Some Assets. Let's assume you want to buy a house, and so you get a mortgage from XYZ Bank.
Troubled Asset Relief Program (TARP) - InvestingAnswers
2020年10月5日 — TARP immediately gave the U.S. Treasury the ability to purchase up to $700 billion to buy mortgage backed securities (MBS) from financial institutions that wanted to sell them. For much of 2008 and 2009, TARP was the only global buyer of these troubled assets .
Japan Credit Rating Agency (JCR) - InvestingAnswers
2019年10月1日 — Similar to Moody's or Standard & Poor's in the United States, JCR rates debt securities and conducts market, industry and economic research. Founded in 1985, JCR is headquartered in Tokyo and employs about 100 people. The company focuses on short- and long-term debt, medium-term notes, asset-backed securities and publication of research.
Money Market Yield Definition & Example - InvestingAnswers
2020年8月21日 — Financial instruments traded on the money market include certificates of deposit, Treasury bills, commercial paper, municipal notes, short-term asset-backed securities, Eurodollar deposits, and repurchase agreements. Because these investments have shorter-terms they are often classified as cash equivalents.
Pledged Asset Definition & Example - InvestingAnswers
2019年10月1日 — A pledged asset is collateral pledged by a borrower to a lender (usually in return for a loan). The lender has the right to seize the collateral if the borrower defaults on the obligation. In some cases, the lender may require the borrower to place pledged assets such as cash or securities in a separate account that the lender controls.