What Does Pool Factor Mean?

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What Does Pool Factor Mean?
The percentage of the original principle that is left to be distributed in a mortgage-backed security, as represented by a numerical factor that will be attached on periodic market quotes (such as in Bloomberg) and other presentations of the MBS’s price.

Calculated as:
 

Pool Factor

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Originally posted by : sameer m s

What Does Pool Factor Mean?
The percentage of the original principle that is left to be distributed in a mortgage-backed security, as represented by a numerical factor that will be attached on periodic market quotes (such as in Bloomberg) and other presentations of the MBS’s price.

Calculated as:
 



 

can you pls explain this in detail? the whole concept? what when where it is applicable?


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