Conditional Prepayment Rate - CPR

外汇网2021-06-19 14:09:11 43

A loan ppayment rate that is equal to the proportion of the principal of a pool of loans that is assumed to be paid off pmaturely in each period. The calculation of this estimate is based on a number of factors such as historical ppayment rates for pvious loans that are similar to ones in the pool and on future economic outlooks.

|||The CPR can be used for a variety of loans. For example, mortgages, student loans and pass-through securities all use CPR as estimates of ppayment.

Typically, CPR is expssed as a percentage. For example, a pool of mortgages with a CPR of 8% would indicate that for each period, 8% of the pool's remaining principal outstanding will be paid off.

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