hard · Asset-Backed Securities collateral
An auto ABS pool has an original balance (B_0) of 500 million and a current balance (B_t) of 300 million.
If the pool is prepaying at a constant 1.50% ABS speed, what is the equivalent Single Monthly Mortality (SMM) for the current month, assuming zero scheduled principal for this specific calculation?
- 4.17%
- 2.50%
- 0.90%
- 1.50%
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