HomeDefinitionsCompareDebt Principal only (PO)The financial definition for Principal only (PO):A mortgage-backed security (MBS) whose holder receives only principal cash flows on the underlying mortgage pool. All the principal distribution due from the underlying collateral pool is paid to the registered holder of the stripped MBS on the basis of the current face value of the underlying collateral pool. Similar MatchesPrincipalPrincipal(1) The total amount of money being borrowed or lent. (2) The party affected by agent decisions in a principal-agent relationship. Principal agent relationshipPrincipal agent relationshipOccurs when one person, an agent, acts on the behalf of another person, the principal. Principal amountPrincipal amountThe face amount of debt; the amount borrowed or lent. Often called principal. Further SuggestionsPrincipal Exchange Rated Linked Securities (PERLS)Principal stockholder Remaining principal balance Value additivity principal Click to compare definitions of Principal only (PO) Click to view definitions beginning pr |