Constant Prepayment Rate

From Open Risk Manual

Definition

The Constant Prepayment Rate (CPR) in a securitisation context is an assumed annual constant rate of payment of principal not anticipated by the scheduled amortisation of the Portfolio which, when applied monthly, results in the expected portfolio of the Transferred Receivables balance and allows to calculate the monthly prepayment.

Details

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Variations

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Issues and Challenges

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See Also

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Disclaimer

  • This information is provided as is without any representation of correctness, completeness or suitability for any purpose whatsoever. Refer to actual securitisation prospectuses for the definitive terms applicable in each case
  • Definitions, detailed descriptions and other content may change at any time as further examples or relevant aspects are introduced

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