Meaning Prepayment risk
What does Prepayment risk mean? Here you find 5 meanings of the word Prepayment risk. You can also add a definition of Prepayment risk yourself

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Prepayment risk


The risk that principal repayment will occur earlier than scheduled, forcing the investor to reinvest at lower prevailing rates.
Source: investor.gov

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Prepayment risk


Definition The possibility that homeowners will pay off their mortgage loans early, such as when interest rates fall and they decide to refinance.
Source: investorwords.com

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Prepayment risk


The risk that falling interest rates will lead to heavy prepayments of mortgage or other loans, forcing the investor to reinvest at lower prevailing rates.
Source: investinginbonds.com

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Prepayment risk


Prepayment risk is the risk of suffering lost income on a fixed-income security due to early payoff of the outstanding debt. On a mortgage-backed security (MBS), for example, the underlying mortgage b [..]
Source: mortgageloan.com

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Prepayment risk


The risk that principal repayment will occur earlier than scheduled, forcing the investor to receive principal sooner than anticipated and reinvested at lower prevailing rates. The measurement of prep [..]
Source: sifma.org





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