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PSA

PSA
Used to manage risk inherent in prepayment. Assumes increase in prepayments with a cap at 30 months. Helps assess speed of prepayment in new loans. 0.2% is the standard increase amount denoting a 2% increase in rate every month until the 30th month.

Random Finance Terms for the Letter P

  • P&L
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  • P2P
  • P/E
  • P/E Ratio
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  • PSA
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  • Pairoff
  • Paper
  • Exit mobile version