What is the meaning of pass-through?

pass-through is the original type of MBS structure. In a pass-through, investors own a pro rata claim to the cash flows from the pool of underlying mortgages. Each investor's pro rata share of interest and principal is remitted to the investor, "passed through" by an agent.

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APABarry Goldsmith. (2010). pass-through. Retrieved September 23, 2026, from http://smartdefine.org/pass-through/definitions/1160228
ChicagoBarry Goldsmith. 2010. "pass-through" http://smartdefine.org/pass-through/definitions/1160228 (accessed September 23, 2026).
HarvardBarry Goldsmith 2010, pass-through, Smart Define, viewed 23 September, 2026, <http://smartdefine.org/pass-through/definitions/1160228>.
MLABarry Goldsmith. "pass-through" 21 October 2010. Web. 23 September 2026. <http://smartdefine.org/pass-through/definitions/1160228>
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