Prepayment speed
Also called speed, the estimated rate at which mortgagors pay off their loans ahead of schedule, critical in assessing the value of mortgage pass-through securities. ...
Prepayment Speed
The estimated rate at which mortgagors pay off their loans ahead of schedule. This rate is critical in assessing the value of mortgage pass-through securities. Also called speed.
Prepayment speeds can be expressed in SMM (single monthly mortality), CPR (collateral prepayment rate) or multiples of PSA.
[edit] See also
PSA prepayment model ...
A series of prepayment speeds, in a sequence, that is chosen to reflect an assumed interest rate scenario.
Dealer-Median Prepayment Speed
The median value of all Wall Street securities dealers' prepayment speed estimates for the underlying mortgages used to form mortgage-backed securities.
Related: Prepayment speed
Spider
See: SPDRs
Spike
Order ticket that shows the stock, price, number of shares, type, and account of the order. Origin: Practice of placing the ticket on a metal spike upon execution or cancellation.
Lag response of prepayments A delay of typically about three months between the time the weighted-average coupon of an MBS pool crosses the threshold for refinancing and observation of an acceleration in prepayment speed is observed.
Speed Related: prepayment speed Spider See: SPDRs Spike Used in the context of general equities. Order ticket that shows the stock, price, number of shares, type, and account of the order.
Steady state As an MBS pool ages, or four to six months after component mortgages have passed at least once the threshold for refinancing, the prepayment speed tends to stabilize within a fairly steady range.
Speed Related:prepayment speed Spin-off A company can create an independent company from an existing part of the company by selling or distributing new shares in the so-called spinoff.
Mortgage duration A modification of standard duration to account for the impact on duration of MBSs of changes in prepayment speed resulting from changes in interest rates.
A modification of standard duration to account for the impact on duration of MBSs of
changes in prepayment speed resulting from changes in interest rates. Two factors are employed: one that ...
This term is also used to define the prepayment speed range for a credit instrument.
Collateral - Is the underlying security, mortgage, or asset for the purposes of securitization or borrowing and lending activities. It is pledged or held in trust.
EXTENSION RISK - The risk that rising interest rates may slow prepayment speeds and therefore cause an ...
EXTENSION SWAP - Extending maturity through a swap, e.g. selling a 2-year note and buying one with a sl...
Examples of observable market inputs include: quoted prices for similar assets, interest rates, yield curve, credit spreads, prepayment speeds, etc.
As the M.B.S. pool ages, or four to six months after it was passed at least once through the threshold for refinancing, the prepayment speed tends to stabilize within a fairly steady range.
Steenth ...
A delay of typically about three months between the time the weighted-average coupon of an MBS pool crosses the threshold for refinancing and observation of an acceleration in prepayment speed is observed.
Lagging ...
Definition: [crh] A delay of typically about three months between the time the weighted-average coupon of an MBS pool croDefinition: sses the threshold for refinancing and observation of an acceleration in prepayment speed is observed.
PSA is used primarily to derive an implied prepayment speed of new production loans.
prepayment speed The average rate at which mortgage holders are expected to pay off their loans.... prequalification The act of determining how much a prospective home buyer might be eligible to borrow before he or she has applied for a loan.
 See also: Prepayment, Banks, Expense, Prepayments, Principal payments
  
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