ABS Pass through vs. Pay through

I just got a FI question in the Q bank talking about ABS pay through structures… I swear I never read anything about these (and certainly have never heard of them in 15 years of buying ABS). WTF?

I’ve seen it on AF still don’t know the difference


Paythrough = actively managed Passthrough = pro-rata ABS paythrough and passthrough securities can be created directly from the pool of underlying. MBS paythrough are created from mortgage passthroughs that are created from a pool of underlying mortgages. I think this is correct, don’t quote me and I don’t know if this is anything close to what you guys were looking for.

Works for me.