Burnout
From Open Risk Manual
Revision as of 15:02, 1 December 2022 by Wiki admin (talk | contribs) (Created page with "== Definition == '''Burnout''', in the context of Prepayment behavior and risks is the phenomenon, whereby refinancing (prepayment) rates decline over time even if no chan...")
Definition
Burnout, in the context of Prepayment behavior and risks is the phenomenon, whereby refinancing (prepayment) rates decline over time even if no change occurs in the Refinancing Incentive.
This means that a group of borrowers that experienced an earlier regime of refinancing opportunities might have lower refinancing rates than a group with no such prior experience.
