Posted on: 27th Sep, 2009 10:09 am
What is the meaning of Prospectus Prepayment Curve?
Where is it used?
Where is it used?
Prospectus Prepayment Curve is also known as "Pricing prepayment curve".This is term used in HELs. This is nothing but the transaction pricing speed in definate prospects. This is always issue-specific. Issues are normally priced at 100% PPC.Comparisons among deals can be difficult because PPC may be defined differently in each security prospectus.
hi frankmcdowell,
The Prospectus Prepayment Curve is used to measure the pricing speed of a transaction. It is usually applicable to home equity loans .
The Prospectus Prepayment Curve is used to measure the pricing speed of a transaction. It is usually applicable to home equity loans .
thanks for you all.
A prepayment penalty is a provision of your contract with the lender that states that in the event you pay off the loan entirely, you will pay a penalty. Penalties are usually expressed as a percent of the outstanding balance at time of prepayment.