Super PO
Definition of 'Super PO'A companion tranche structured as a Principal Only (PO) bond, which receives only principal payments from the underlying mortgages. A Super PO is designed to lend support to planned amortization class (PAC) and targeted amortization class (TAC) collateralized mortgage obligations (CMOs). Super POs are priced at deep discounts to par or face value, and investors eventually receive the full face value through scheduled payments and prepayments. |
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Investopedia explains 'Super PO'The price of a super |
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