Weighted average coupon
The weighted average of the gross interest rate of the mortgages underlying the
pool as of the pool issue date, with the balance of each mortgage used as the weighting factor.
Related Terms: ...
Weighted average Coupon
Definition: [crh] The weighted average of the gross interest rates of mortgages underlying a pool as of the pool Definition: EF="/?rd=issue"issue date; the balance of each mortgage is used as the weighting factor.
Weighted Average Coupon (WAC) - The weighted-average gross interest rates of the pool of mortgages that underlie a mortgage-backed security (MBS) at the time the securities were issued.
Weighted Average Coupon - Is the measurement of the gross coupons underlying a Mortgage Backed Security and weighted by outstanding balance of each mortgage.
The point when the weighted average coupon of an M.B.S. is at a level to induce homeowners to prepay the mortgage in order to refinance to a lower-rate mortgage, generally reached when the weighted average coupon of the M.B.S.
Threshold for refinancing The point when the weighted average coupon of an M.B.S. is at a level to induce homeowners to prepay the mortgage in order to refinance to a lower-rate mortgage, generally reached when the weighted average coupon of the M.B.
Lag response of prepayments There is typically a lag of about three months between the time the weighted average coupon of an MBS pool has crossed the threshold for refinancing and an acceleration in prepayment speed is observed.
Weighted average Coupon
Weighted average life
Weighted Average Market Capitalization
Weighted average maturity
Weighted average portfolio yield
Weighted average remaining maturity
Weighting
Well''s Notice
Well-diversified portfolio
When issued ...
Weighted average Coupon
Weighted average Coupon
Weighted Average Credit Rating
Weighted Average Daily Attendance (school systems)
Weighted Average Daily Membership
Weighted Average Debt Service Coverage Ratio
Weighted average life ...
For example, in a mortgage pass-through security, the interest paid to the investors is typically one-half percent less than the weighted average coupon rate paid by the underlying borrowers.
The tendency of a pool of MBS to reflect an especially high rate of prepayments the first time it crosses the threshold for refinancing, especially if two or more years have passed since the date of issue without the weighted average coupon of the ...
Often the weighted average of the cost of equity and the cost of debt The weights are determined by the relative proportions of equity and debt in a firm's capital structure.
Weighted average Coupon ...
 See also: Issue date, Cost of capital, Expected return, Gross interest, Expense
  
|
RSS
