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QUESTION 4 Check all that is true about the SDA default model: The SDA takes into account maturity of the mortgage SDA function for defaults
QUESTION 4 Check all that is true about the SDA default model: The SDA takes into account maturity of the mortgage 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 figure out what the CDR is for each month SDA stands for standard default assumption If you know the beginning pool balance and assume a 200% SDA, you can figure out what the CDX is for each month Under the 100% SDA assumption noone defaults when their mortgage is a few months away from being paid out QUESTION 4 Check all that is true about the SDA default model: The SDA takes into account maturity of the mortgage 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 figure out what the CDR is for each month SDA stands for standard default assumption If you know the beginning pool balance and assume a 200% SDA, you can figure out what the CDX is for each month Under the 100% SDA assumption noone defaults when their mortgage is a few months away from being paid out
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