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. The New York Times Financial Glossary

Financial and business terms. 2012.

Look at other dictionaries:

  • 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. Bloomberg Financial Dictionary …   Financial and business terms

  • 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. The prepayment speed estimates used by banks and other regulated financial enterprises… …   Investment dictionary

  • speed — The rate at which an MBS prepays. An MBS with little or no prepayments is said to have a slow speed. An MBS with significant prepayments is said to have a high speed or to be speeding. Since pools that prepay faster than anticipated can perform… …   Financial and business terms

  • Speed — Related:prepayment speed * * * speed UK US /spiːd/ noun ► [C or U] IT, INTERNET the rate at which a computer or an internet connection operates and provides information: »Increase the speed of your computer with our new software. »How do I verify …   Financial and business terms

  • Speed dating — is a formalized matchmaking process or dating system whose purpose is to encourage people to meet a large number of new people. Its origins are credited to Rabbi Yaacov Deyo of Aish HaTorah, originally as a way to help Jewish singles meet and… …   Wikipedia

  • prepayment rate — A representation that reflects the rate at which prepayments are received or forecasted to be received for a mortgage loan, a pool of mortgage loans, or an MBS. May be expressed as a PSA or CPR speed. American Banker Glossary …   Financial and business terms

  • prepayment risk — The risk that prepayments will speed or slow and therefore change the yield and/or life of the security. American Banker Glossary …   Financial and business terms

  • PSA Prepayment Rate — The Bond Market Trade Association s Mortgaged Asset Backed Securities Division s prepayment model based on an assumed rate of prepayment each month of the then unpaid principal balance of a pool of mortgages. PSA is used primarily to derive an… …   Financial and business terms

  • break-even prepayment rate — The specific prepayment rate ( speed) at which the yield of a mortgage security is equal to the yield available from another security to which it is being compared. American Banker Glossary …   Financial and business terms

  • Mortgage-backed security — Securities Securities Bond Stock Investment fund Derivative Structured finance Agency security …   Wikipedia

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”

We are using cookies for the best presentation of our site. Continuing to use this site, you agree with this.