In a dynamic pool pass-through,
A)the debt obligations in the pool have a revolving structure.
B)the debt obligations in the pool normally have a longer average life then the stated maturity of claims issued against the pool
C)the proceeds will be reinvested for a fixed time period when the loans mature.
D)all of the above
E)a and c only

Question

Quizplus · Accepted Answer

In a dynamic pool pass-through, the debt obligations in the pool have a revolving structure (option A) and the proceeds will be reinvested for a fixed time period when the loans mature (option C). Option B is incorrect because the debt obligations in the pool can have a shorter or equal average life compared to the stated maturity of claims issued against the pool.

In a Dynamic Pool Pass-Through