Meaning BREAK-EVEN PAYMENT RATE: The prepayment rate of an MBS coupon that will produce the same cash flow yield (CFY) as that of a predetermined benchmark MBS coupon. Used to identify for coupons higher than the benchmark coupon the prepayment rate that will produce the same cash flow yield (CFY) as that of the benchmark coupon; and for coupons lower than the benchmark coupon the lowest prepayment rate that will do so
More terms such as Break-even payment rate in Dictionary B.
- Definition Bear:
- Examples An investor who believes a stock or the overall market will decline. A bear market is a prolonged period of falling stock prices, usually by 20% or more. Related: bull break-even payment rate definition.
- Definition Basis Risk:
- Examples Uncertainty about the basis at the time a hedge may be lifted. Hedging substitutes basis risk for price risk break-even payment rate explain.
- Definition Board Room:
- Examples A room at a brokerage firm where its clients can watch an electronic board displaying stock prices and transactions. Also refers to the room where Board of Directors meetings take place break-even payment rate what is.
- Definition Bid-Asked Spread:
- Examples The difference between the bid and the asked prices break-even payment rate meaning.
- Definition Bond Covenant:
- Examples A contractual provision in a bond indenture. A positive covenant requires certain actions, and a negative covenant limits certain actions break-even payment rate abbreviation.
