See: Pass-Through Certificate.
You hold a pass-through certificate. It gives you dips on some of the payout from a pool of assets, usually mortgages. So...a group of homeowners pay their monthly mortgages. All those mortgage payments get collected together into a big pool of money. That money is then passed through to you and the other holders of the certificates.
The modified pass-through certificate adds an additional level of security. Under this arrangement, you don't have to worry about the homeowners paying their mortgages. You get your money either way. The issuer of the modified pass-through certificate guarantees the payments, whether or not the homeowners send their checks in on time.
In other words, the issuing party takes on the risk of default. The certificate holders get paid no matter what.
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Finance: What is a partnership?23 Views
finance a la shmoop. what is a partnership? a marriage. joint ownership
of a bar. when two dudes put up half the dough each to share 50/50 in a time [two different people offer money for keys]
machine. well a partnership is just the merging
of two individuals in doing a given business deal or setting up a business
structure. if both are owners then both are liable for you know bad things
should they happen. partnerships carry a lot of financial danger if one partner
goes off the rails and decides to commit fraud in the name of the company or that
evil partner enters into a stupid company bankrupting contract, well then [bad contract sold to unsuspecting victim]
both parties pay for it. the innocent partner pays just as much in the form of
whatever financial damages befall the partnership as the evil one, and
partnership liabilities include personal assets if the partnership is structured
like a general partnership with limited partners having no personal liability so [ liability structures defined]
for all the good that a partnership can have it can get bad and ugly so you got
to enter partnerships carefully. spend lots of dough on lawyers before you set
it up so you don't have to after. [money exchanged for partnership contract ]
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