Overshooting

Overshooting
Reflection of an increased prepayment rate as soon as an MBS crosses the refinance threshold. Most commonly occurs when the WAC of underlying debt security pool has not crossed refinancing limitations for two or three years following the date of issue.

Random Finance Terms for the Letter O

  • Overreaction Hypothesis
  • Overseas Private Investment Corporation (OPIC)
  • Overshooting
  • Oversubscribed Issue
  • Oversubscription Privilege
  • Over-the-Counter Market (OTC)
  • Overwriting
  • Oversubscribed Issue
  • Oversubscription Privilege