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This glossary guides you to the meaning of over 500 words and phrases used in securitization industry.

If you find any missing links, please do write to us at vinodk@vsnl.com

For any other comments or questions please feel free to write to us.

Securitisation terminology A ABCP ABS Acceleration Accrual bonds Actionable claims  Actuarial method Adjustable Rate Mortgages Agency Agency securities Aging Alternative risk transfer Amortization APR APY ARM  ART. Asset-backed Commercial Paper  Asset-backed financing  Asset Backed Securities Assignment  Assignable mortgage/ Assumable Mortgage Average maturity B Baby Bonds Back-End Load  Back-up servicer  BAN or Bond Anticipation Note Bank for International Settlements (BIS) Bankruptcy  Bankruptcy code Bankruptcy estate  Bankruptcy remote Bare trust Bearer Bond Benchmark Beneficial interest  Beneficial interest certificates BIS Black Box  Bond Equivalent Yield Bowie bonds Brady bonds Bridge Bank Buckets Bullet Burnout C Call Option Call Risk Cap Capital adequacy Cash collateral Cash flow bonds Cat bonds Catastrophe bonds Catastrophe risk  CATS CBO CBOE CBOT Chapter 11 Charge Charitable trust Cherry picking- Choses in action Clean up buyback or call CLO CMBS CME CMO Collateral Collateral Trust Bond  Collateralized Loan Obligation Collateralized Mortgage Obligation   Collateralized Obligation Co-mingling Co-mingling risk Commercial mortgage backed securities (CMBS) Commercial paper Condominium Conduit Consolidation Constant Prepayment Rate (CPR) Conversion Clause Coupon Covenants Coupon- Couterparty Credit enhancement Credit derivative Credit equivalent Current Face Value D Dated Date . Debt - Debt to income ratio Deep discount Defeasance Deferred purchase price- De-recognition  D/I ratio Direct credit substitute Discount Rate Discrete trust Discretionary further advance Disintermediation Distribution Date DRIP or DRIPS E Eligibility criteria Embedded Option Emerging Markets  English mortgage   Equipment Trust Certificate Equitable assignment - Equitable mortgage Escrow Excess spread Explicit Option   Extending Extension Risk F Facility Factor FANNIE MAE   FASB 77 FASB 125 FASIT FEDERAL HOME LOAN MORTGAGE CORPORATION FEDERAL NATIONAL MORTGAGE ASSOCIATION FHLMC Final Distribution Date or Maturity Date Financing treatment First loss risk Fiscal transparency Fixed allocation percentage Fixed-Rate Mortgage Floater Floating allocation percentage - Floating Rate Floating rate note Floor FNMA Foreclosure FRCMO Freddie Mac FRM FRN FRS 5- Front-End Load Funded risk participation Further advances Future receivables securitisation G GAAP General Obligation Bonds GIC Ginnie Mae GNMA Gnome Gold (MBS) Program Government National Mortgage Association GPM Graduated Payment Mortgage   Grantor trust Green Guaranteed investment contract H Hair cut Home equity loans Hurricane Bonds   I Implicit Option Implicit rate of returnb Interest Only Interest Rate Interest Rate Risk Interest rate swap Investment company IO . IO-ette or Ioette Issuer J Jump Bonds Junior bonds Junk Bonds K L Legal mortgage Lifting or piercing the corporate veil Limited recourse Linked presentation Liquidity facility Limited liability company (LLC) Loan to value ratio LTV M Mandatory further advance Mark-to-Market Master trust Matched funding MBS Medium term note Mega or Megas Mezzanine bonds Midget MIG policy  Monoline insurer Mortgage  Mortgage Backed Securities (MBS)  Mortgagee Mortgagor MTN Multiple class securities N No petition Novation. O Obligor Off balance sheet Originator Originator credit enhancement Orphan company Over-collaterilisation   P P&I PAC PAC POs Participation  Participation certificates Pass Through  Pay through Payer Pfandbriefe Piercing the corporate veil Pipeline Planned Amortization Class PO Pool policy Pooling Prepayment Prepayment Penalty Prepayment Risk Principal allocation percentage Principal only Private label securities- Private Pass Throughs Profit extraction Profit retention PSA PSA Prepayment Put option Q Qualifying SPV R   RAN RAP Re-characterisation- Re-configuration of cash flows Re-purchase option Real Estate Investment Trust Real Estate Mortgage Investment Conduit Receivables sale agreement Recourse Regulatory Capital REIT REMIC Replenishment Residuary income Revenue Anticipation Note - Revenue Bonds   Reverse TAC Revolving assets securitisation Rule 3a-7 S Sale treatment Scheduled Bonds Seasoned Securities Act of 1933 Securitization Security Senior Servicer Servicing fees Set-off SMBS SPC SPE Special purpose entity Special Purpose Vehicle SPV Spread account Strips Stripped Mortgage Backed Securities   . Structural credit enhancement Structured finance or Products Sub-participation Subordinated Substantive consolidation Substitute servicer Super PAC Super PO Support Support Bonds T TAC TAN Targeted Amortization Class Tax Anticipation Note Tax transparent entity Third party credit enhancement Tranche "True sale" treatment U Underlying security Unfunded risk participation- Unwinding of transfers V W Weighted-Average Coupon (WAC) Weighted-Average Life (WAL) Weighted-Average Maturity (WAM)   X Y Yield Yield-to-Maturity   Z Z PACs Zero coupon bonds