What Does Pool Factor Mean?

MS SAMEER (CMA*CA*CMDM*ast FUND MANAGER*LEGAL ADVISOR)   (14938 Points)

24 June 2010  

What Does Pool Factor Mean?
The percentage of the original principle that is left to be distributed in a mortgage-backed security, as represented by a numerical factor that will be attached on periodic market quotes (such as in Bloomberg) and other presentations of the MBS’s price.

Calculated as:
 

Pool Factor