Seasoning Ramps and Speed Multiples: 50%, 100%, 200%
This lesson is part of the course
In this lesson
You build a fictional standard prepayment ramp that rises with loan age, scale it to 50% and 200% speed, convert a fast speed into an SMM and read an observed CPR as a speed multiple.
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Lessons in this course
- The Mortgage Pool: Level Payments, Interest and Scheduled Principal Locked
- Prepayment Speeds: CPR, SMM and Prepaid Principal Locked
- Seasoning Ramps and Speed Multiples: 50%, 100%, 200% Locked
- Pass-Through Cash Flows: Servicing and Guarantee Fees Locked
- Weighted Average Life at Different Speeds Locked
- Price and Yield: Discounting the Pool's Cash Flows Locked
- Sequential Tranches: Who Gets the Principal First Locked
- Scenario Dashboard: Rates, Speeds, WAL and Negative Convexity Locked