Overshooting

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Overshooting

The tendency of a pool of MBS to reflect an especially high rate of prepayments the first time it crosses the threshold for refinancing, specially if two or more years have passed since the date of issue without the weighted average coupon of the pool crossing the refinancing threshold.
References in periodicals archive ?
We examine this case study through the lens of the overshooting model.
In the overshooting model, we illustrated how media amplification can drive the elite end of a sport so far from the entry level that it can cause catastrophic harm to the sport.
Expectations and Commodity Price Dynamics: The Overshooting Model," American Journal of Agricultural Economics 68 (May 1986) 344-48.
The Dornbusch overshooting model assumed sticky goods prices, and showed that a monetary shock can yield exchange rate overshooting.