Meaning 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 implied prepayment speed of new production loans. 100% PSA assumes a prepayment rate of 2% per month in the first month following the date of issue, increasing at 2% percentage points per month thereafter until the 30th month. Thereafter, 100% PSA is the same as 6% CPR (Constant prepayment rate)
More terms such as PSA Prepayment Rate in Dictionary P.
- Definition Performance Attribution Analysis:
- Examples of a money manager's performance results to explain the reasons why those results were achieved. This analysis seeks to answer questions such as: (1) What were the major sources of added value psa prepayment rate definition.
- Definition P/E Effect:
- Examples That portfolios with low P/E stocks exhibit higher average risk-adjusted returns than those with high P/E stocks. Related: Value manager psa prepayment rate explain.
- Definition Pre-Sold Issue:
- Examples An issue that is sold out before the coupon announcement psa prepayment rate what is.
- Definition Preliminary Prospectus:
- Examples An initial or tentative version of a prospectus psa prepayment rate meaning.
- Definition Price Change:
- Examples Increase or decrease in the closing price of a security compared to the previous day's closing price psa prepayment rate abbreviation.
