Question
Check all that is true about the SDA default model: If you know the beginning pool balance and assume a 200% SDA, you can calculate
Check all that is true about the SDA default model:
If you know the beginning pool balance and assume a 200% SDA, you can calculate what the CDX is for each month | ||
Under the 100% SDA assumption no one defaults when their mortgage is a few months away from being paid out | ||
SDA function for defaults takes the same shape as a PSA function for prepayments | ||
If you know the beginning pool balance and assume a 200% SDA, you can calculate what the CDR is for each month | ||
SDA stands for standard default assumption | ||
The SDA takes into account the month since origination |
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