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Prepayment riskThe risk that principal repayment will occur earlier than scheduled, forcing the investor to reinvest at lower prevailing rates.
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Prepayment riskDefinition The possibility that homeowners will pay off their mortgage loans early, such as when interest rates fall and they decide to refinance.
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Prepayment riskThe risk that falling interest rates will lead to heavy prepayments of mortgage or other loans, forcing the investor to reinvest at lower prevailing rates.
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Prepayment riskPrepayment 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 [..]
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Prepayment riskThe 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 [..]
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