4 mins read Pricing a financial instrument is not an exact science. There it is out there now; you can go ahead and
3 mins read Principal Component Analysis and Volatility functions (The text and methodology given below follows the content covering the subject topics in
5 mins read The option adjusted spread (OAS) is a constant spread that when added to the interest rates used to discount the
< 1 min read Here is the cosmic code joke again. If you can read this, you will understand perfectly what the following section
< 1 min read Defaults These are full involuntary prepayments which arise when the borrower is unable to make loan payments. The loan is
4 mins read Refinancing There are two types of refinancing, cash-out refinancing and rate refinancing. These constitute the largest source of prepayments. Cash