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Gestation RP

A reverse repurchase (RP) agreement by which a mortgage firm sells federally guaranteed mortgage-backed securities (MBSs) to a securities dealer…

Covered Bond

A type of debt-based derivative instrument that provides a much safer investment than asset-backed or mortgaged-backed securities. This bond is…

Gestation Repurchase Agreement

A reverse repurchase (repo) agreement by which a mortgage firm sells federally guaranteed mortgage-backed securities (MBSs) to a securities dealer…

Covered Bond

A type of debt-based derivative instrument that provides a much safer investment than asset-backed or mortgaged-backed securities. This bond is secured by the cashflows generated…

IO Fixed-Rate Mortgage

A mortgage loan (fixed-rate mortgage) that pays flat interest only (IO) over an interest only period within its life (10,...

Junior/Senior Structure

A two-tranche liability position that consists of senior and subordinated securitized loans. In an junior/senior structured loan, the securitized loan (e.g.,...

Mortgage Loan

A loan that is extended by a bank or financial institution to an individual or firm seeking to buy a...

PO

It stands for principal only; the principal-only portion of a mortgage loan or a mortgage-backed security (MBS). Financial institutions, especially...

Principal Only

The principal-only portion of a mortgage loan or a mortgage-backed security (MBS). Financial institutions, especially mortgage financing firms, separate the...

IO

The interest-only (OI) portion of a mortgage loan. Financial institutions, especially mortgage financing firms, separate a series of interest payment...