KBRA Releases Research Report on PACE Prepayment Speeds
Sep. 07, 2018
NEW YORK--(BUSINESS WIRE)--Sep 7, 2018--Kroll Bond Rating Agency (KBRA) releases a Structured Finance Research Report entitled, "Puzzling PACE Prepayments."
Lifetime Constant Prepayment Rates (CPR) in residential PACE securitizations have generally ranged from 12-19%, which is in line with lifetime CPRs for Freddie Mac and Fannie Mae residential mortgage backed securities. However, PACE prepayment rates appear to lack the negative convexity inherent in mortgages prepayment rates. Given its effect on bond yields, we believe prepayment behavior should command heightened focus, especially in the rising rate environment we now live in. In the report, KBRA provides a summary of recent PACE prepayment trends and discusses their thoughts on what is driving prepayment behavior.
To view the report, please click .
About KBRA and KBRA Europe
KBRA is a full service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. In addition, KBRA is designated as a designated rating organization by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus, is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider, and is a certified Credit Rating Agency (CRA) by the European Securities and Markets Authority (ESMA). Kroll Bond Rating Agency Europe Limited is registered with ESMA as a CRA.
View source version on businesswire.com:https://www.businesswire.com/news/home/20180907005433/en/
Brian Ford, 646-731-2329
CFA, Structured Finance Research
KEYWORD: UNITED STATES NORTH AMERICA NEW YORK
INDUSTRY KEYWORD: PROFESSIONAL SERVICES BANKING FINANCE CONSTRUCTION & PROPERTY OTHER CONSTRUCTION & PROPERTY
SOURCE: Kroll Bond Rating Agency
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PUB: 09/07/2018 02:17 PM/DISC: 09/07/2018 02:17 PM