MBS vs MPS

[Chicago_Bull]

Hi there,
Can someone please help me differentiate between:
a) Mortgage Backed securities
b) Mortgage Passthrough securities
Thanks!

 

[vas]

MBS is a security that has mortgage cashflows as the collateral.
MBS can be either a mortgage passthrough security or a collateralised morgage obligation.
MPS- teh mortgage cash flows recd froma mortgage loan are given to MPS owners in proportion of their holding.
CMO- tranches of CMO exist with the superior tranches receiving the payment first.

 

[JoeyDVivre]

That’s probably right for the exam, but you might want to be a little flexible on that. I wouldn’t worry much about this.