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Principal only (PO) |
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Principal only (PO)A mortgage-backed security (MBS) whose holder receives only principal cash flows on the underlying mortgage pool. All the principal distribution due from the underlying collateral pool is paid to the registered holder of the stripped MBS on the basis of the current face value of the underlying collateral pool.Principal only (PO) Similar MatchesPrincipalPrincipalThe sum of money outstanding upon which interest is payable. Also refers to one who is served by an agent. Private Mortgage Insurance (PMI): Insurance written by a private mortgage insurance company protecting the mortgage lender against loss occasioned by a mortgage default and foreclosure. PrincipalPrincipalThe amount of money that the borrower owes on a mortgage - the amount on which interest is calculated. PrincipalPrincipalThe initial amount of a loan, thus not including interest. Value additivity principalValue additivity principalWhen the value of a whole group of assets exactly equals the sum of the values of the individual assets that make up the group of assets. Or, the principle that the net present value of a set of independent projects is just the sum of the net present values of the individual projects. PrincipalPrincipalA person or company for whom an agent acts.The face value of a debt instrument such as a bond or a note. Further SuggestionsAdditional principal paymentPrincipal stockholder Principal supplier Undisclosed Principal Principal Principal amount Principal Exchange Rated Linked Securities (PERLS) Principal agent relationship Remaining principal balance |
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