easy · Asset-Backed Securities
In the auto industry, what is the primary driver of 'voluntary' prepayments?
- Interest rate drops causing borrowers to refinance their car loans at the bank.
- Borrowers using their tax refunds to pay off their loans early.
- The death of the borrower leading to an insurance payout.
- Vehicle trade-ins where the borrower buys a new car and pays off the old loan.
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