In mortgage-backed securities , this is the percentage of the principal amount of mortgages that are prepaid in a given month. For investors of MBSs, prepayment of mortgages is usually undesirable since future interest is foregone.
This is more broadly referred to as "prepayment risk." Due to the importance of prepayment risk, single monthly mortality was developed as a metric for tracking prepayments in the mortgage pool.
|||Prepayment hinders the returns for MBS investors because mortgages are normally prepaid using refinancing loan, and this happens primarily when interest rates have fallen. So while an investor in an MBS believes they have locked in a higher yielding investment in a low rate environment, they may in fact have the carpet pulled out from under them. The mortgage holders in the MBS may refinance at lower interest rates, and then pay off the mortgage in the MBS pool. Now the investor has their money back and must reinvest the funds in a lower interest rate environment.
投融网(www.ipo.hk)创建于2011年，
专业的企业上市孵化器，
助力专精特新，赋能细分行业独角兽。
财务税务：代理记账 财务规划 税务筹划
法律合规：公司合规 法律纠纷 ipo上市法务
知识产权：注册商标 专利申请 品牌策划
数字智能：网站建设 智能软件 公众号小程序
宣传推广：B2B平台 SEO优化 媒体财经公关
跨境海外：红筹架构 跨境基金 家族信托保险
政府招商：园区规划 园区招商 产业集群生态
资本运作：产业基金 融资策划 商业计划书
上市服务：前期规划 上市辅导 定增并购在融资
融资、融智、融技、融人才、融政策
从成立到上市，投融网提供一站式服务平台，注册成为平台会员可以发布企业产品和服务信息，推广企业品牌；对接券商、会计师事务所、律师事务所、软件开发公司、知识产权服务机构；对接企业投融资与上市信息、并购重组投行业务信息；在线结识更多人脉，构建投融资与上市服务生态圈。
欢迎各类机构洽谈合作。
邮箱：service@ipo.hk
电话：0755-33572246
