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Lag response of prepayments

• There is typically a lag of about three months between the time the weighted average coupon of an MBS pool has crossed the threshold for refinancing and an acceleration in prepayment speed is observed.

 
 Embedded terms in definition
 Average
Coupon
Pool
Prepayment speed
Prepayment
Speed
Threshold for refinancing
Time
Weighted average coupon
Weighted average
 
 Related Terms
 Lag
Prepayments

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