PUBLIC SECURITIES ASSOCIATION STANDARD PREPAYMENT MODEL - PSA
An assumed monthly rate of prepayment that is annualized to the outstanding principal balance of a mortgage loan. The Public Securities Association Standard Prepayment model (PSA) is one of several models used to calculate and manage prepayment risk. The PSA model acknowledges that prepayment assumptions will change during the life of the obligation and affect the yield of the security. The model assumes a gradual rise in prepayments, which peaks after 30 months. The standard model, called "100 percent PSA," starts with an annualized prepayment rate of 0% in month zero, with 0.2% increases each month until peaking at 6% after 30 months.
Also called "PSA prepayment model."
POPULAR TERMS
Tax-Equivalent Yield
Pre-tax yield a bonds needs to hold for its yield to match the yield of a tax-free municipal bond. The measure is used to compare the yield of taxa ...
Per Capita
This is Latin term which means “by head” when translated to English. It basically means “average per person.” Per capita is ...
Fat Man Strategy
A defense tactic against takeover. Using this tactic, a target company captures a business or assets. The strategy supposes that the bulked-up comp ...
Panic Selling
Panic selling is the rapid increase of investment sale, resulting to a severe price decline. Mostly, investors get involved in panic selling when t ...
Private Investment Fund
A financial investment company which meets either of these criteria:
it has less than 100 investors, or
its member inv ...
POPULAR ARTICLE
SEE FOREX TUTORIAL
Connection of Inflation and Interest Rates
We cannot simply ignore the connectivity of inflation and interest rates. Both items are interrelated. So, whenever there is a news item about a co ...
A Guide to Your Personal Income Tax: Steps to Take before April 15
Taxpayers, remember these two dates when filing your tax return: December 31 and April 15. We have previously discussed what to do before the year ...
Student Loans: Consolidating Private Loans
Fixed interest rates.
That is one viable reason for consolidating private loans although you are not mulling over that option. Private lo ...
Digesting Financial Statements: Introduction
Financial statements open a window how healthy a company is (in terms of finances). This document presents the financial activities of a person or ...
A Guide to Income Tax: Overlooked Credits and Cuts
The US tax code changes from time to time, and majority of taxpayers cannot name at least three of the most common deductible expenditures. On that ...
ECONOMIC CALENDAR
| Time | Country | Indices | Period |
|---|---|---|---|
| 02:00 | MI Inflation Gauge | Mar | |
| 02:00 | ANZ Business Confidence | Mar | |
| 02:30 | Private Sector Credit | Feb | |
| 03:30 | PMI Manufacturing | Mar | |
| 03:30 | Non-Manufacturing PMI | Mar | |
| 07:00 | Housing Starts | Feb | |
| 08:00 | Retail Sales | Feb | |
| 08:00 | Import Price Index | Feb | |
| 10:30 | Mortgage Approvals | Feb |
