Second pass regression

Similar financial terms

Secondary market
The market where securities are traded after they are initially offered in the primary market. Most trading is done in the secondary market. The New York stock Exchange, as well as all other stock exchanges, the bond markets, etc., are secondary markets. Seasoned securities are traded in the secondary market.

Secondary issue
A secondary issue is both a (a) procedure for selling blocks of seasoned issues of stocks or (b) more generally, the sale of already issued stock.

Secondary Distribution
The redistribution to the public of a block of shares owned by an existing shareholder (not from the corporate treasury).

Agency pass-throughs
Mortgage pass-through securities whose principal and interest payments are guaranteed by government agencies, such as the Government National Mortgage Association (" Ginnie Mae "), Federal Home Loan Mortgage Corporation (" Freddie Mac") and Federal National Mortgage Association (" Fannie Mae").

Passive portfolio
A market index portfolio.

Passive investment management
Buying a well-diversified portfolio to represent a broad-based market index without attempting to search out mispriced securities.

Pass-through coupon rate
The interest rate paid on a securitized pool of assets, which is less than the rate paid on the underlying loans by an amount equal to the servicing and guaranteeing fees.

Pass-through securities
A pool of fixed-income securities backed by a package of assets (i.e. mortgages) where the holder receives the principal and interest payments.

Pass-through rate
The net interest rate passed through to investors after deducting servicing, management, and guarantee fees from the gross mortgage coupon.

Passive portfolio strategy
A strategy that involves minimal expectational input, and instead relies on diversification to match the performance of some market index. A passive strategy assumes that the marketplace will reflect all available information in the price paid for securities, and therefore, does not attempt to find mispriced securities.

Mortgage pass-through security
Also called a passthrough, a security created when one or more mortgage holders form a collection (pool) of mortgages sells shares or participation certificates in the pool. The cash flow from the collateral pool is "passed through" to the security holder as monthly payments of principal, interest, and prepayments. This is the predominant type of MBS traded in the secondary market.

Modified pass-throughs
Agency pass-throughs that guarantee (a) timely interest payments and (b) principal payments as collected, but no later than a specified time after they are due.

Conventional pass-throughs
Also called private-label pass-throughs, any mortgage pass-through security not guaranteed by government agencies.

Simple linear regression
A regression analysis between only two variables, one dependent and the other explanatory.

Regression toward the mean
The tendency for subsequent observations of a random variable to be closer to its mean.

Regression equation
An equation that describes the average relationship between a dependent variable and a set of explanatory variables.

Regression analysis
A statistical technique that can be used to estimate relationships between variables.

Multiple regression
The estimated relationship between a dependent variable and more than one explanatory variable.

Linear regression
A statistical technique for fitting a straight line to a set of data points.