• See Weighted Average Coupon.
| ||Embedded terms in definition|
Weighted average coupon
| ||Referenced Terms|
| ||Overshooting: The tendency of a pool of MBSs to reflect an especially high rate or prepayments the first time it crosses the threshold for refinancing, especially if two or more years have passed since the date of issue without the Wac of the pool having crossed the refinancing threshold.|
| ||Pool: Is a term used in several ways. From a futures trading perspective, it refers to the amount or size of unfilled orders. This inability to fill orders can occur at a limit up or limit down-market condition. For mortgages or other loans, it refers to the individual collateral underlying the security. For securitized mortgages, it can refer information such as the issuer's name, year of origination, geographic distribution, Wac, WAM and the maturity date.|
| ||Threshold for refinancing: The point when the Wac of an MBS is at a level to induce homeowners to prepay the mortgage in order to refinance to a lower-rate mortgage, generally reached when the WAC of the MBS is 2% or more above currently available mortgage rates.|
Managing Your Expenses on a Fixed or Reduced Income: Once you've retired, you finally have the opportunity to work at your dream job - keeping yourself happy. It's your chance to visit places you've always wanted to see, take up a new hobby and spend more time with your family and friends. But to be successful at this new position, you've got to make the most of your income and investments. Here are suggestions. More...
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