2. A lockout shifts to a support bond principal payments that otherwise might be used in a PAC schedule. The effect of a lockout is to push forward the beginning of the first PAC window to a specified date and to stabilize the support bond. Lockouts are normally applied to the first PAC for a period of 2 or 3 years, lending stability to the earliest support bond class.

3. Generic current coupon collateral is assumed.

..................Content has been hidden....................

You can't read the all page of ebook, please click here login for view all page.
Reset
34.205.246.61