Agency Pass-Through

Agency Pass-Through - An agency pass-through is a specific type of pass-through security, which is a security that represents a combined debt obligations that provides income from debtors to the shareholders, guaranteed by a government agency. The most common of these are mortgage-backed certificates. Mortgage back securities were first issued in 1970 and have been commonly used since then. These agency pass-through securities are much different from the conventional pass-through securities, which are backed by mortgages, but are not guaranteed by one of the government's agencies. These conventional pass-through securities are also called private label pass-through securities.