I'm trying to understand the concept of CPR in the context of securitisation. Could someone explain what it stands for and its role in this process?
6 answers
KpopHarmonySoulMate
Thu Nov 21 2024
The Constant (or Conditional) Prepayment Rate (CPR) serves as a benchmark for measuring prepayments in Australia.
KimonoGlitter
Thu Nov 21 2024
CPR represents the additional amount of principal prepaid over and above the scheduled repayments.
DondaejiDelightfulCharmingSmile
Thu Nov 21 2024
This figure is then annualized and expressed as a percentage.
HanjiHandiwork
Wed Nov 20 2024
The calculation of CPR is crucial for understanding the prepayment behavior of borrowers.
GeishaCharming
Wed Nov 20 2024
The rate is generally estimated using historical prepayment rates for assets that are similar in nature.