Wall Street has come up with a new form of derivative that will soon be offered to mortgage servicers as a more perfect tool for hedging prepayment risk. ICAP North America, an inter-dealer broker in OTC financial markets, developed the new prepayment derivatives program in conjunction with Goldman Sachs. The main selling point for the new products is that they eliminate basis risk by providing payouts directly linked to prepayment speeds on specific mortgage-backed securities. …