• Is a term used in several ways. From a futures trading perspective, it refers to the amount or size of unfilled orders. This inability to fill orders can occur at a limit up or limit down-market condition. For mortgages or other loans, it refers to the individual collateral underlying the security. For securitized mortgages, it can refer information such as the issuer's name, year of origination, geographic distribution, WAC, WAM and the maturity date.

 Embedded terms in definition
Maturity date
 Referenced Terms
 48 hour rule: The requirement that all Pool information, as specified under the PSA Uniform Practices, in a TBA transaction be communicated by the seller to the buyer before 3 p.m. EST on the business day 48-hoursprior to the agreed upon trade date.

 Adverse selection problem: Banks have to be aware of a particular type of borrowers. Some borrowers will have hidden negative information not available to the bank. As the bank demands a higher interest rate, borrowers with safe projects will drop out. Hence, the fraction of borrowers with risky projects will depend on the interest rate. The higher the interest rate, the higher risk will be the Pool of applicants. This is called the adverse selection problem.

 Amortization factor: The Pool factor implied by the scheduled amortization assuming no prepayments.

 Arbitrator: Is a person who is selected to resolve a dispute in the financial industry. Usually there are three arbitrators on a panel. The composition of the arbitrators is from a Pool of candidates viewed either as Public or Industry.

 Collateralized mortgage obligation: Is a complex bond structure which reallocates interest and principal payment streams. These tranches, which are often designated as A to Z pieces or securities, are engineered from mortgage backed securities used as the underlying collateral. Collateralized Mortgage Obligations come in many shapes and sizes and are often viewed as unique constructions. Some of the more commonly named tranches are: Interest Only, Principal Only, Floater, Inverse Floater, Planned Amortization Class, Support, Scheduled, Sequential, Targeted Amortization Class, and Z or Accrual Bond. Often, many of these securities contain option characteristics. Related structures are Collateralized Bond Obligations and Collateralized Loan Obligations.Abbreviated CMO. A security backed by a Pool of pass-throughs, structured so that there are several classes of bondholders with varying maturities, called tranches. The principal payments from the underlying pool of pass-through securities are used to retire the bonds on a priority basis as specified in the prospectus. Related: mortgage pass-through securityA Collateralized Mortgage Obligation (CMO) is a vehicle that repackages the cashflows in a way that redistributes prepayment risk.

 Related Terms
 Blind pool
Delayed issuance pool
Local government investment pool lgip
Pool factor

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