DEFINITION of 'Whole Pool'

In the mortgage-backed securities market, whole pools refer to mortgage certificates where ownership is represented by an undivided interest in entire pools of mortgages. The term 'whole' refers to the fact that the ownership interest is undivided, as opposed to a partial or fractional interest in the pool of mortgages.

BREAKING DOWN 'Whole Pool'

The owner of a whole pool would generally retain all the upside potential associated with the pool. However, the downside risk is also not mitigated, since it is borne only by the investor, not shared among several participants as would be the case if they held a fractional interest in the pool.

RELATED TERMS
  1. Pass-Through Certificate

    Fixed-income securities that represent an undivided interest ...
  2. Gross Coupon

    A term used to describe the coupon received from a mortgage pool ...
  3. Jumbo Pool

    A pass-through Ginnie Mae II mortgage-backed security that is ...
  4. Commodity Pool

    A private investment structure that combines investor contributions ...
  5. MBS Pool Number

    A number or alphanumeric character assigned to a mortgage-backed ...
  6. Pool Factor

    The percentage of the original principal that is left to be distributed ...
Related Articles
  1. Investing

    Swimming Pools: Costs Vs. Long-Term Value

    Consider the costs of installing and maintaining a swimming pool, and compare this with the pool's utility and the market value it adds to your home.
  2. Insights

    An Introduction To Dark Pools

    Dark pools are an ominous-sounding term for private exchanges or forums for trading securities; unlike stock exchanges, dark pools are not accessible by the investing public.
  3. Investing

    Should You Wade Into The Dark Pools Of Liquidity?

    Dark pools of liquidity allow big investors to trade away from the public eye. They limit market impact but may leave small investors in the cold.
  4. Insights

    Should You Be Afraid Of Dark Pool Liquidity?

    Don't fear the deep end. Dark pool liquidity can help drive down stock cost for everyday investors.
  5. Investing

    Pooled Funds Minimize Risk and Reward

    Pooled funds combine money from many individuals to invest in vehicles like a mutual fund or a pension fund.
  6. Insights

    Brexit Effects: Banks Reduce Dark Pool Trading (MS, BAC)

    Dark pools, the major trading venues for big investors, saw reduced volumes amid Brexit, raising questions about their viability.
  7. Investing

    An Introduction To Dark Pools

    Dark pools are private exchanges for trading large chunks of securities that are not accessible to the public.
  8. Investing

    Find Security In Covered Bonds

    Find out about a safe investing alternative that could have prevented the subprime meltdown.
  9. Insights

    How Interest Rates Affect the Housing Market

    Understand how rate changes can affect home prices and learn how you can keep up.
RELATED FAQS
  1. What are the best ways to invest in mortgage-backed securities (MBS)?

    Find out how you can start investing in real estate through mortgage-backed securities. Read Answer >>
  2. What are the pros and cons of a simple-interest mortgage?

    Learn the difference between a simple interest mortgage and a standard mortgage, along with their relative advantages and ... Read Answer >>
  3. What is the difference between a collateralized mortgage obligation (CMO) and a collateralized ...

    Both collateralized mortgage obligations (CMOs) and collateralized bond obligations (CBOs) are similar in that investors ... Read Answer >>
  4. What is securitization?

    Securitization is the process of taking an illiquid asset, or group of assets, and through financial engineering, transforming ... Read Answer >>
  5. Why do MBS (mortgage-backed securities) still exist if they created so much trouble ...

    Read several different arguments in favor of allowing the trade of mortgage-backed securities, even after the financial crisis ... Read Answer >>
Hot Definitions
  1. 403(b) Plan

    A retirement plan for certain employees of public schools, tax-exempt organizations and certain ministers. Generally, retirement ...
  2. Master Of Business Administration - MBA

    A graduate degree achieved at a university or college that provides theoretical and practical training to help graduates ...
  3. Liquidity Event

    An event that allows initial investors in a company to cash out some or all of their ownership shares and is considered an ...
  4. Job Market

    A market in which employers search for employees and employees search for jobs. The job market is not a physical place as ...
  5. Yuppie

    Yuppie is a slang term denoting the market segment of young urban professionals. A yuppie is often characterized by youth, ...
  6. SEC Form 13F

    A filing with the Securities and Exchange Commission (SEC), also known as the Information Required of Institutional Investment ...
Trading Center