Cryptocurrency Q&A What is the difference between CPR and SMM?

What is the difference between CPR and SMM?

GangnamGlitter GangnamGlitter Tue Nov 19 2024 | 7 answers 1413
I want to know the difference between CPR and SMM. I've heard these two terms but I'm not sure what they mean exactly and how they differ from each other. Can someone explain it to me? What is the difference between CPR and SMM?

7 answers

EmeraldPulse EmeraldPulse Thu Nov 21 2024
It represents an annual rate that indicates the likelihood of mortgage prepayments.

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Valentina Valentina Thu Nov 21 2024
Yet, mortgage payments occur on a monthly basis.

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SejongWisdomKeeper SejongWisdomKeeper Thu Nov 21 2024
To align with this frequency, we must compute the monthly prepayment rate.

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Caterina Caterina Thu Nov 21 2024
SMM serves as this measure.

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Carlo Carlo Thu Nov 21 2024
CPR stands for Constant Prepayment Rate.

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