medium · Asset-Backed Securities collateral
Under the SEC-described Absolute Prepayment Model, receivables are treated as having the same size and amortization characteristics. A pool originally contains 10,000 receivables, and exactly 100 receivables fully prepay during the month.
What monthly ABS rate does this represent?
- 0.50% monthly ABS
- 1.00% monthly ABS
- 10.00% monthly ABS
- 11.36% annual CPR
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