What is the Prospectus Prepayment Curve?

The Prospectus or Pricing Prepayment Curve (PPC) is used to measure the pricing speed of a transaction. It is usually applicable to home equity loans (HELs). The PPC is a convention used by investors in asset-backed securities (ABSs) in attempt to predict prepayment behavior of certain loan pools.

Since the ABS market has existed since 1980 only, any prepayment models and conventions are supposed to evolve further