Prepayments
A company may pay for goods or services before they have been received. Any amounts that have been paid for goods and services not received by the end of an accounting period are shown in the balance sheet as prepayments.
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.
Lag response of prepayments
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 ...
Prepayments (Deferral - cash paid or received before consumption)
Accrual - cash paid or received after consumption
Expenses ...
Prepayments to supplier
In developed economies publishers may buy coeditions for the exclusive licence to publish in a language from foreign publishers or book "packagers".
Prepayments
Payments made in excess of scheduled mortgage principal repayments.
Prepayments introduce uncertainty into the cash flows of a mortgage pass-through. The rate at which fixed-rate mortgagors prepay is influenced by many factors. A significant factor is the level of interest rates.
Prepayments by Customers arise from transactions such as selling magazine subscriptions in advance, selling gift-cards, selling tickets well before a scheduled event, ...
Prepayments are cash outlays made in advance of receipt of goods or services.
Prescribed ...
The risk that prepayments will speed or slow and therefore change the yield and/or life of the security.
pre-refunding (pre-re) ...
Finally, after tax prepayments and credits are subtracted, the amount of tax owed the IRS or the amount of refund owed the taxpayer is determined.
Scheduled cash flows The mortgage principal and interest payments due to be paid under the terms of the mortgage, not including possible prepayments. Scorched-earth policy Often used in risk arbitrage.
They differ from PAC bonds whose amortization is guaranteed as long as prepayments on the underlying mortgages do not exceed certain limits. A TAC's schedule is met at only one prepayment rate.
For example, a fixed rate mortgage may lose value as rates go down because of prepayments. Negative covenant A bond covenant that limits or prohibits altogether certain actions unless the bondholders agree.
Current assets: cash + those assets (stock, debtors, prepayments, bank accounts) which the management intend to convert into cash or consume in the normal course of business within one year or within the operating cycle.
This is accomplished by applying income (payments and prepayments of principal and interest) from mortgages in the pool in the order that the CMOs pay out.
Such questionable transactions may include prepayments deducted by clients which are not included in the attorney's income and are returned to the client in a subsequent taxable year, ...
On FRMs the payment is always fully amortizing, provided the borrower has made no prepayments. (If the borrower makes prepayments, the monthly payment is more than fully amortizing).
Average effective maturity takes into consideration all mortgage prepayments, puts, and adjustable coupons.
The tendency of a pool of MBSs to reflect an especially high rate or prepayments the first time
it crosses the threshold for refinancing, especially if two or more years have passed since the date of issue ...
s to reflect an especially high rate of prepayments the first time it crosses the threshold for refinancing, ...
CONSTANT PERCENT PREPAYMENT (CPP) - An expression of mortgage loan prepayments in annual terms. The sin...
CONSTANT PREPAYMENT RATE (CPR) - A measure of the historical or expected prepayment of principal on a m...
A payment made in excess of scheduled mortgage principal repayments. Prepayments affect not only borrowers and lenders but also investors in real estate securities. Important concepts in this area include: ...
prepayment
Paying on the balance of a loan before it is due. Mortgage prepayments decrease the total amount of interest paid over the life of the mortgage. Penalties may or may not apply.
A premature payoff of a loan. Prepayments can be made for the total or partial value of the loan.
Price Basing ...
The risk that falling interest rates will lead to heavy prepayments of mortgage or other loans-forcing the investor to reinvest at lower prevailing rates.
Present Value ...
While there may have been a surge in prepayments due to declining interest rates, the remaining mortgages do not prepay as quickly as the previous ones in the pools.
Amortization Factor definition :
The pool factor implied by the scheduled amortization assuming no prepayments.
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The pool factor implied by the scheduled amortization assuming no prepayments.
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Personal Finance Glossary ...
A clause in a mortgage agreement which specifies when and how prepayments may be made.
Principal:
The amount actually borrowed.
Average Life
The average length of time an issue of serial bonds and/or term bonds with mandatory sinking funds and/or estimated prepayments is expected to be outstanding. It also can be the average maturity of a bond portfolio.
Prepayment Options (Real Estate): A clause in a mortgage agreement which specifies when and how prepayments may be made.
Bonds offered as a tranche class of some CMOs, according to a sinking fund schedule. They differ from PAC bonds whose amortization is guaranteed as long as prepayments on the underlying mortgages do not exceed certain limits.
The mortgage principal and interest payments due to be paid under the terms of the mortgage, not including possible prepayments.
Scorched-earth policy ...
All MBS buyers assume some level of prepayments in their initial yield calculations, ...
Yield Maintenance - A prepayment premium allowing investors to realize the same yield as if the borrower made all scheduled mortgage payments until maturity. Created to make investors indifferent to prepayments and to make refinancing ...
These costs normally include, but are not limited to, origination fees, discount points, attorney's fees, costs for title insurance, surveys, recording documents, and prepayments of real estate taxes and insurance premiums held by the lender.
The complete repayment of a loan, including principal, interest, and any other amounts due. Payoff occurs either over the full term of the loan or through prepayments.
Payoff Statement: ...
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.
Sweep: Typically a covenant that requires all or a specified fraction of available cash flow to be used for debt service, including prepayments of principal.
Overshooting The tendency of a pool of MBSs to reflect an especially high rate or prepayments the first time it crosses the threshold for refinancing, ...
When interest rates rise, there will be lower prepayments of the principal; companion bonds therefore absorb most of the prepayment risk of a CMO.
 See also: Prepayment, Expense, Banks, Values, Bills
  
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