What is prepayment risk
Question 1: What is prepayment risk and how does it apply to collateralized mortgage obligations and other forms of securitized mortgages?Question 2: What innovations has the mortgage lending industry developed to deal with prepayment risk?
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What is prepayment risk and how does it apply to collateralized mortgage obligations and other forms of securitized mortgages?
If your opportunity cost of money is 12%, how much is the investment worth?
Collateral can be anything of value acceptable to the bank but it typically some type of security. Dan found that customers turn over any collateral.
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