Prepayment Model — A model used to estimate the level of prepayments on a loan portfolio that will occur in a set period of time, given possible changes in interest rates. Prepayment models are based on mathematical equations and usually involve the analysis of… … Investment dictionary
PSA prepayment model — is a prepayment model by the SIFMA (Securities Industry and Financial Markets Association) formerly known as Public Securities Association or PSA that assumes increasing prepayment rates for the first 30 months of the lifetime and constant rates… … Wikipedia
Public Securities Association Standard Prepayment Model - PSA — An assumed monthly rate of prepayment that is annualized to the outstanding principal balance of a mortgage loan. The PSA model is one of several models used to calculate and manage prepayment risk. The PSA model acknowledges that prepayment… … Investment dictionary
Prepayment — is early repayment of a loan by a borrower. In the case of a mortgage backed security (MBS), prepayment is perceived as a risk, because mortgage debts are often paid off early in order to incur lower total interest payments through cheaper… … Wikipedia
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
PSA model — One of two standard models for describing the rate at which prepayments have been, are, or are expected to be received for mortgages and mortgage backed securities. The model assumes that borrowers are far less likely to refinance a new mortgage… … Financial and business terms
Securitization — is a structured finance process, which involves pooling and repackaging of cash flow producing financial assets into securities that are then sold to investors. The name securitization is derived from the fact that the form of financial… … Wikipedia
Fixed income attribution — refers to the process of measuring returns generated by various sources of risk in a fixed income portfolio, particularly when multiple sources of return are active at the same time. For example, the risks affecting the return of a bond portfolio … Wikipedia
Fixed-income attribution — refers to the process of measuring returns generated by various sources of risk in a fixed income portfolio, particularly when multiple sources of return are active at the same time. For example, the risks affecting the return of a bond portfolio … Wikipedia
PSA — A 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 implied prepayment speed of new production loans, a 100% PSA assumes a prepayment … Financial and business terms
Refinancing Risk — 1. The risk that an early unscheduled repayment of principal on mortgage backed securities(MBS) will occur when the underlying mortgages are refinanced by borrowers. All MBS buyers assume some level of prepayments in their initial yield… … Investment dictionary
