Pass-Through Certificates
Encyclopedia
Pass-Through Certificates (PTCs) are instruments that evidence the ownership of two or more Equipment Trust Certificate
Equipment Trust Certificate
An equipment trust certificate is a financial security used in aircraft finance, most commonly to take advantage of tax benefits in North America....

s. In other words, Equipment Trust Certificate
Equipment Trust Certificate
An equipment trust certificate is a financial security used in aircraft finance, most commonly to take advantage of tax benefits in North America....

s may be bundled into a pass-through structure as a means of diversifying the asset pool and/or increasing the size of the offering. The principal and interest payments on the Equipment Trust Certificate
Equipment Trust Certificate
An equipment trust certificate is a financial security used in aircraft finance, most commonly to take advantage of tax benefits in North America....

s are "passed through" to certificate holders.

In short, the term "pass-through" means the issuing company, such as Ginnie Mae has received money from the homeowner and passed it to the investor.
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