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12 Cards in this Set
- Front
- Back
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Government Sponsored Agency |
1 mortgage backed security 2 debenture |
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TVA |
1933 Flood control navigation Agricultural and industrial development Largest public power system |
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Federal National Mortgage Associate |
(Fannie Mae) 1930s Liquid secondary market for mortgage 2008: taken over by Government Federal Home Loan Corporation (Freddie Mac) |
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Government Owned Agency |
TVA Fannie Mae/Freddie Mac |
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Corporate Debt Instruments |
1 public utilities 2 transportation 3 bank/finance 4 industrial |
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Corporate Bond Issue Features |
Indenture Collateral trust bonds Senior unsecured debt Subordinated debt |
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Provisions for paying off bonds |
1. Call or refund provision 2. Make-whole premium provision 3. Sinking fund provision |
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Main rating agencies |
1. Moody's 2. Standard & Poors' 3. Fitch Rating |
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Prepayment probability calculation |
1. Federal housing data 2. Conditional prepayment rate 3. Public sector association benchmark |
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Single Monthly Mortality Rate (SMM) |
1 - (1 - CPR)^(1/12) |
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Conditional Prepayment Rate (CPR) |
A benchmark for predicting cash flow and prepayment of a pass through assuming that some fraction of the remaining principal is prepaid every month for the remaining maturity. Based on the characteristic of the loan pool and economic environment. |
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Public Security Association (PSA) Benchmark |
An assumption on the speed of prepayment over the life of the pass through. |
