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The risk that arises during periods of rising interest rates when borrowers tend to pay off their loans later than...
The risk that a borrower will fail to make a balloon or lump-sum payment at maturity. Balloon risk may arise...
A PSA range within which the underlying mortgage collateral should remain over time so that a PAC bond would stick…
A collateralized mortgage obligation (CMO) that is structured as inverse floater tranches. The CMO will earn interest at rates that...
A collateralized mortgage obligation (CMO) that is structured as inverse floater tranches. The CMO will earn interest at rates that...