A calculation used in structured finance transactions to estimate the cash flow from annualized prepayments based on the average 12 year life of a mortgage. The single monthly mortality factor is multiplied by 12 to arrive at the CPP which does not account for any compounded interest.
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Definition of constant percent prepayment (CPP): A calculation used in structured finance transactions to estimate the cash flow from annualized prepayments ...
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... yield to maturity on mortgage-backed securities: constant percent prepayment ( CPP) , an annualized estimate of mortgage prepayments; constant prepayment ...
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mortgage prepayment model in which the average monthly prepayment rate is annualized by multiplying by 12. CPR expresses prepayment as ratio of ...
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... yield to maturity on mortgage-backed securities: constant percent prepayment ( CPP) , an annualized estimate of mortgage prepayments; constant prepayment ...
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constant percent prepayment (CPP). An expression of mortgage loan prepayments in annual terms. The single monthly mortality rate (SMM) multiplied by 12.
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... on mortgage-backed securities: Constant Percent Prepayment (CPP), an annualized estimate of mortgage prepayments; Constant Prepayment Rate (CPR ), ...
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Jan 6, 2011 ... (CPR), Constant Percent Prepayment (CPP), and the Public Securities Association Standard Prepayment Model (PSA). Prepayment Reserve ...