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Prepayment Risk

 Sep     


General search term.
Might be referring to: prepayment risk is essentially the risk that the mortgage-backed security buyer will receive, say, seven years of interest income at an agreed-upon rate, on top of principal repayment, instead of 10 years of such interest. Prepayment forces the buyer to reinvest the principal, often at a lower rate of return.Apr 18, 2018.
This is a seasonal trend that repeats every September.
This trend is forecasted to be growing in the next 2 years.

  

Track this trend
(Monitor this trend over time)
 12 Months
Trend: declining
MOM change: -0.15%
 5 Years
Trend: growing
MOM change: 0.29%

Latest forum discussions

We tracked 86 total in the last 3 months

...-for-lower-rate reason for prepayment. The key thing to note... now have some increased prepay risk as the borrowers can just... 2.5 pools have prepay risk, so does the generic 2... 2.5 TBA' contract has prepayment risk. RNP
Published on 2021-02-04 in the General Forum forum
This discussion is in English.
... the fund is subject to prepayment risk. When mortgage refinance activity is... and that there is hidden risk somewhere that may show up...of GNMAs, the most obvious risk is prepayment risk, and it produces a statistical...in exchange for taking "convexity" risk. Like you, I can look ... "if there's hidden risk there, it hasn't shown ...decide to prepay, and therefore prepayment risk and convexity are hard to ...
Published in The terrestrial, globular, planetary hunk of matter, flattened at the poles, is my abode.--O. Henry on 2021-01-23 in the Personal Investments forum
This discussion is in English.
... the fund is subject to prepayment risk. When mortgage refinance activity is... and that there is hidden risk somewhere that may show up...of GNMAs, the most obvious risk is prepayment risk, and it produces a statistical...in exchange for taking "convexity" risk. Like you, I can look ... "if there's hidden risk there, it hasn't shown ...decide to prepay, and therefore prepayment risk and convexity are hard to ...
Published in The terrestrial, globular, planetary hunk of matter, flattened at the poles, is my abode.--O. Henry on 2021-01-23 in the Personal Investments forum
This discussion is in English.
... this in the section on risk: Extension risk: The chance that during periods... interest rates. Extension risk is high for the fund. Prepayment risk: The chance that... their maturity dates, resulting in prepayment of mortgage-backed securities held ... in the fund’s income. Prepayment risk is high for the fund. ...
Published in Wisconsin on 2021-02-16 in the Investing - Theory, News & General forum
This discussion is in English.
... this in the section on risk: Extension risk: The chance that during periods... interest rates. Extension risk is high for the fund. Prepayment risk: The chance that... their maturity dates, resulting in prepayment of mortgage-backed securities held ... in the fund’s income. Prepayment risk is high for the fund. ...
Published in Wisconsin on 2021-02-16 in the Investing - Theory, News & General forum
This discussion is in English.
...component as well. Because the prepayment penalty exemption amount resets each... rate mortgage with limited prepayment amounts, it seems like investing... in sooner realization of prepayment benefit when the loan adjusts ...either when it balloons or prepayment penalty goes away completely. (I... to me). an essentially risk free CD with 4% interest ... it would not be risk free. this approach in situation ...
Published on 2021-02-28 in the Personal Finance (Not Investing) forum
This discussion is in English.
...component as well. Because the prepayment penalty exemption amount resets each... rate mortgage with limited prepayment amounts, it seems like investing... in sooner realization of prepayment benefit when the loan adjusts ...either when it balloons or prepayment penalty goes away completely. (I... to me). an essentially risk free CD with 4% interest ... it would not be risk free. this approach in situation ...
Published on 2021-02-28 in the Personal Finance (Not Investing) forum
This discussion is in English.
... months has really highlighted the risk in using sort of a... designed to "more accurately identify risk and approve more applicants than ... screens. In addition to default risk, Upstart can scan for identity... similar loans from multiple lenders), prepayment risk, fee optimization, and more. Management...’ customer data, credit policies and risk appetite. Payments and fees from ...
Published on 2021-03-31 in the Saul's Investing Discussions forum
This discussion is in English.
... months has really highlighted the risk in using sort of a... designed to "more accurately identify risk and approve more applicants than ... screens. In addition to default risk, Upstart can scan for identity... similar loans from multiple lenders), prepayment risk, fee optimization, and more. Management...’ customer data, credit policies and risk appetite. Payments and fees from ...
Published on 2021-03-31 in the Saul's Investing Discussions forum
This discussion is in English.
... refinancing. How much changes in prepayment rates affects mortgage REITs depends ... use hedging techniques to reduce prepayment risk as they would deal with... interest rate risk. With the increase in mortgage... rates today, an thus lower risk of prepayments, mREIT stocks are...
Published on 2021-03-25 in the NRZ forum
This discussion is in English.
... refinancing. How much changes in prepayment rates affects mortgage REITs depends ... use hedging techniques to reduce prepayment risk as they would deal with... interest rate risk. With the increase in mortgage... rates today, an thus lower risk of prepayments, mREIT stocks are...
Published on 2021-03-25 in the NRZ forum
This discussion is in English.
...fraud, income misrepresentation, loan stacking, prepayment risk, fee optimization, and more. But.... First, the level of risk in the environment went up ...based system that can discern risk and handle it properly becomes ...institutional investors, obviously, concerned about risk, obviously, pulled back. Risk premiums went very high, required ...As the sort of broader risk landscape started to clear a ...
Published on 2021-03-20 in the Saul's Investing Discussions forum
This discussion is in English.
...fraud, income misrepresentation, loan stacking, prepayment risk, fee optimization, and more. But.... First, the level of risk in the environment went up ...based system that can discern risk and handle it properly becomes ...institutional investors, obviously, concerned about risk, obviously, pulled back. Risk premiums went very high, required ...As the sort of broader risk landscape started to clear a ...
Published on 2021-03-20 in the Saul's Investing Discussions forum
This discussion is in English.
... Summary: Yibin Tianyi Offtake and Prepayment Price Sensitive: Yes View Document... we received US$15m upfront prepayment (to be repaid over 3... and eliminates a lot of risk. @timmi I don't understand ...
Published on 2021-03-15 in the ASX - By Stock forum
This discussion is in English.
... Summary: Yibin Tianyi Offtake and Prepayment Price Sensitive: Yes View Document... we received US$15m upfront prepayment (to be repaid over 3... and eliminates a lot of risk. @timmi I don't understand ...
Published on 2021-03-15 in the ASX - By Stock forum
This discussion is in English.
QUOTE(Pikichu @ Feb 5 2021, 02:54 PM) Thank you for this tip. You have to learn how bonds work. Bonds also have disadvantages. Here is what I found. Bonds are also subject to various other risks such as call and prepayment risk, credit risk, reinvestment risk, liquidity risk, event risk, exchange rate risk, volatility risk, inflation risk, sovereign risk, and yield curve risk.
Published on 2021-02-05 in the Kopitiam forum
This discussion is in English.
QUOTE(Pikichu @ Feb 5 2021, 02:54 PM) Thank you for this tip. You have to learn how bonds work. Bonds also have disadvantages. Here is what I found. Bonds are also subject to various other risks such as call and prepayment risk, credit risk, reinvestment risk, liquidity risk, event risk, exchange rate risk, volatility risk, inflation risk, sovereign risk, and yield curve risk.
Published on 2021-02-05 in the Kopitiam forum
This discussion is in English.
... to assume 'not much risk above treasury' = 'no risk above treasury' and.... Even if the difference in risk* is small, it should be.... Also one portion of TBM risk will bite you in a ... short (corporate bond issuer calls, prepayment risk in mortgage bonds). Which again ... again not only credit risk but typically significant call risk in muni funds...
Published on 2021-02-26 in the Investing - Theory, News & General forum
This discussion is in English.
... to assume 'not much risk above treasury' = 'no risk above treasury' and.... Even if the difference in risk* is small, it should be.... Also one portion of TBM risk will bite you in a ... short (corporate bond issuer calls, prepayment risk in mortgage bonds). Which again ... again not only credit risk but typically significant call risk in muni funds...
Published on 2021-02-26 in the Investing - Theory, News & General forum
This discussion is in English.