hard · Asset-Backed Securities
An auto ABS transaction is structured with a pool balance of $1,000 million and a monthly prepayment speed of 1.20% ABS. If the pool has amortized to a current balance of 600 million, what is the equivalent Single Monthly Mortality (SMM) rate for the current period?
- 2.00%
- 1.20%
- 14.40%
- 0.72%
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