Principal Only (PO)

Principal Only (PO)

- MBS where holder can claim only cash flows related to principal on the mortgage pool on which the MBS is based.

- In stripped MBS, the portion attributable to principal

- Principal Only securities, where underlying assets are principal payments to be made in future on a mortgage pool.

Related posts:

1. Collateralized Mortgage Obligation (CMO)
2. Principal
3. GNMA-I
4. Principal Amount
5. Principal-Agent Relationship