MBS Pool Number
What Is a MBS Pool Number?
A MBS pool number is an alphanumeric code used to identify a particular mortgage-backed security (MBS), which is a type of asset-backed security that is likewise in some cases called a mortgage-related security or mortgage pass-through.
The MBS pool number is one method for pinpointing and uncover additional information on these types of investments, which comprise of home loans that are sold by issuing banks to a government-sponsored enterprise (GSE) or a financial company and afterward packaged together to form a single investable security. The securities issued address claims on the principal and interest payments made by borrowers on the loans that are in the pool.
MBS pool numbers are regularly six digits long and are assigned by the issuer as indicated by internal naming shows. The MBS pool number is once in a while alluded to as the MBS series number.
Understanding a MBS Pool Number
MBS pool numbers are just a label that recognizes one MBS from another. Issuers utilize specific naming shows, so MBS traders figure out how to identify the issuer from the pool number. This is a critical expertise for research, as you can then hop straightforwardly to the issuer's pool number query system to access disclosures connected with that MBS.
Various issuers, like Freddie Mac, Fannie Mae, and Ginnie Mae, utilize differentiating alpha characters as the initial digit in their MBS pool numbers to identify the pool as their issue. For instance, a Freddie Mac 30-year pool number may be D54321 while a Fannie Mae 30-year pool number may be F54321.
MBS Pool Numbers versus CUSIP Numbers
MBS traders favor pool numbers over CUSIP, a nine-digit alphanumeric number assigned to all securities approved for trading in the United States and Canada by the Committee on Uniform Securities Identification Procedures.
The CUSIP and the MBS pool number get you to a similar place, however the last option offers more immediate subtleties. The MBS pool number is part of a pseudo-ticker that incorporates an identifier of the issuer, the pool type, the issue date, the issuer ID, etc. To get that equivalent information utilizing the CUSIP, you need to go through an extra step of the query interaction.
Special Considerations
At the point when traders allude to the pool number, they are in many cases talking about the bigger pool record that incorporates all the information, as opposed to the specific six-digit identifier. Customary issuers of MBSs have set up naming shows with postfixes and prefixes that show whether a MBS is a single-family loan pool, construction loan pool, etc.
Traders can get a large portion of the information they are looking for from this expanded record without plunging into disclosure forms. Even just working with the pool number, traders who consistently see them will actually want to recognize fresher issues and more seasoned issues from a similar issuer.
Albeit the MBS pool number and its accompanying prefixes and postfixes can pass on a ton of information with respect to the type and character of the security, investors need to go to the query pages that are generally facilitated on the issuers' sites to dive into the subtleties.
These query pages will generally acknowledge either the CUSIP number or the pool number. Whenever that is provided, investors can access historical information on coupons, nitty gritty information on the definition of the issue into tranches, loan-level information on the borrowers, interest adjustment dates, and significantly more.
Features
- Normally six digits long, these codes are utilized to identify the MBS and its issuer and access information on the security.
- A MBS pool number is a number or alphanumeric character assigned to a mortgage-backed security (MBS) by the issuer.
- The MBS pool number and its accompanying prefixes and postfixes can pass on a ton of information in regards to the type and character of the security.
