medium · Asset-Backed Securities collateral
A prime auto loan pool is issued with an initial balance of $1,000M and a constant prepayment speed of 1.2% ABS.
In month 24, the pool factor has declined to $0.60. What is the Single Monthly Mortality (SMM) rate for that month?
- 14.40%
- 2.00%
- 0.72%
- 1.20%
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