Prepayment Speeds on Non-Agency MBS Set to Rise, Bear Stearns Says
October 25, 2002
Historically low interest rates are threatening to push prepayments on non-agency mortgage-backed securities dramatically higher in the months ahead. And investors could feel the impact for a while, researchers at Bear Stearns warn. “In a major refinancing event, prepayments can remain relatively close to their peak levels for up to eight months following an initial surge in speeds,” said analysts Dale Westhoff, Bruce Kramer