Overshooting

The tendency of a pool of MBSs to reflect an especially high rate or prepayments the first time it crosses the threshold for refinancing, especially if two or more years have passed since the date of issue without the WAC of the pool having crossed the refinancing threshold.

Similar financial terms

Exchange rate overshooting
A phenomenon whereby the exchange rate changes by more in the short run than it does in the long run when the money supply changes.

Termbox
Digg the financial term Digg it!
Share financial term on facebook! Share on Facebook
Add to Yahoo My Web Add to Yahoo!
Add to Google bookmarks! Add to Google
Add financial term to del.icio.us Add to del.icio.us
Add financial term to Reddit! Add to Reddit
Add financial term on Spurl Add to Spurl
Add financial term to Furl Add to Furl
E-mail term to a friend! E-mail term to friend!
Printer friendly version Printer friendly version


Did you know?

Required return

The minimum expected return you would require to be willing to purchase the asset, that is, to make the investment.


Popular terms


About us  About bizterms.net
Contact us  Contact us
Bookmark us