Pre-Payment Risk financial definition of Pre-Payment Risk. Pre-Payment Risk finance term by the Free Online Dictionary.

Prepayment Risk

The risk that a borrower will repay a loan before its maturity, depriving the lender of future interest payments. Prepayment risk is most important for callable bonds, in which the issuer may repay the principal and cease paying coupons after a certain date, and mortgage-backed securities, in which the mortgage holder may refinance his/her mortgage, which will result in the security holder losing future interest. Some callable bonds and mortgage-backed securities have structures embedded within them to reduce prepayment risk. See also: Collateralized mortgage obligation, Yield-to-worst, Yield-to-maturity.

prepayment risk

The risk to a lender that part or all of the principal of a loan will be paid prior to the scheduled maturity. For a bondholder, prepayment risk refers to the possibility the issuer will redeem a callable bond prior to maturity. Prepayments generally occur when market rates of interest decline following the loan origination. Prepayment generally results in reduced cash flow for a bondholder when proceeds from the redemption are reinvested at a reduced interest rate. Also called call risk.

prepayment risk

See option risk.

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Anticipation Burnout Contraction Risk Cushion Bonds Early Extinguishment of Debt GMC PAC PAC Bond Portfolio Runoff Principal Only Projected Maturity Date	However, the average spread after correcting for the pre-payment risk or the OAS should remain very stable. Whistling past the graveyard by Husted, Robert N., Jr.; Van Valkenburg, Paul T. / Mortgage Banking These financial institutions will leverage MDA DataQuick for home price and pre-payment risk modeling, loan performance, foreclosure default trends, collateral valuation and risk analysis, loan validation, mark to market and loss reserves calculations. Four of Top 10 Financial Institutions Tap MDA DataQuick for Real ... by Business Wire These services are designed to assist servicers with understanding and target their voluntary pre-payment risks as well as the risks associated with involuntary default. LenderLive Network, Customer Retention Solutions Forge Strategic ... by Business Wire	Power of Attorney of Property power of sale power of termination Powers of Appointment PP&E PPNR PPP Pr Practicas comerciales habituales Practicas constables Praecipium Pramie Praticas contabeis Pratiques commerciales courantes Pratiques comptables Prazo de carencia Prazo intermediario Prazo para o resgate Pre Carriage Pre shipment Finance Pre-Approval Pre-Carriage Pre-IPO Pre-Market Pre-Money Valuation Pre-Payment Risk Pre-Provision Net Revenue Pre-Qualification Pre-Settlement Risk Pre-Shipment Finance Pre-Sold Issue Pre-Syndicate Bid Pre-Tax Contribution Pre-Trade Benchmark Pre-Trade Benchmarks preapproval Prearranged Trading Preauthorized Checks Preauthorized Electronic Debit Preauthorized Electronic Debits Preauthorized Payment Precautionary Demand Precautionary Demand for Money Precautionary Motive Precedence Preceding-Year Basis Precettato Precio base Precio comprador y vendedor Precio contado Precio de apertura	Pre-Owned Office Products Pre-Packaged Bankruptcies Pre-Packaged Bankruptcy pre-packaged software pre-packaged software Pre-Packaged Spirit Pre-Packaged Spirit Pre-Paid Calling Card Pre-Paid Charging Pre-Paid Health Plan Pre-Paid Interest Pre-Paid Legal Pre-Paid Legal Casualty, Inc. Pre-Paid Legal Protection Pre-Paid Legal Services, Inc. Pre-Paid Service Control Point Pre-Paid System Pre-Paid Tuition Pre-Painted Galvanized Iron Pre-Payment Pre-Payment Pre-Payment Pre-Payment Clause Pre-Payment Clauses Pre-Payment Penalties Pre-Payment Penalty Pre-Payment Privilege Pre-Payment Privileges Pre-Payment Risk Pre-Payment Risks Pre-Payment Speed Pre-Payments Pre-Payments Pre-Payments Pre-Pegging Exchange Rate Regime Pre-Penalty Notice Pre-Petition Liabilities Pre-Petition Liability Pre-Pharmacy Club Pre-Physical Therapy Association Pre-Placed Key Pre-Placed Remedial Action Contract Pre-Placement Offer Pre-Planned Launch Pre-Planned Product Improvement Pre-Planned Product Improvement Program Pre-Planned Response Pre-Planning Package Pre-Plant Soil Nitrate Test pre-position pre-position pre-positioned Pre-positioned Equipment Requirement List pre-positioned force, equipment, or supplies Pre-Positioned Materiel Receipt Pre-Positioned Materiel Receipt Document

Mentioned in

References in periodicals archive

Financial browser

Full browser

Anticipation
Burnout
Contraction Risk
Cushion Bonds
Early Extinguishment of Debt
GMC
PAC
PAC Bond
Portfolio Runoff
Principal Only
Projected Maturity Date

However, the average spread after correcting for the pre-payment risk or the OAS should remain very stable.

Whistling past the graveyard by Husted, Robert N., Jr.; Van Valkenburg, Paul T. / Mortgage Banking

These financial institutions will leverage MDA DataQuick for home price and pre-payment risk modeling, loan performance, foreclosure default trends, collateral valuation and risk analysis, loan validation, mark to market and loss reserves calculations.

Four of Top 10 Financial Institutions Tap MDA DataQuick for Real ... by Business Wire

These services are designed to assist servicers with understanding and target their voluntary pre-payment risks as well as the risks associated with involuntary default.

LenderLive Network, Customer Retention Solutions Forge Strategic ... by Business Wire

Power of Attorney of Property

power of sale

power of termination

Powers of Appointment

PP&E

PPNR

PPP

Practicas comerciales habituales

Practicas constables

Praecipium

Pramie