wam = weighted average maturity
whats the difference between wam and weighted average life.
thx作者: tobeornottobe 时间: 2011-7-13 16:16
There is an equation in CFAI for that - do we need to know how to calc WAM, WAL?作者: RMontgomery 时间: 2011-7-13 16:16
so can i say WAM is broad catalog and WAL is inside WAM?作者: huangxiaoxie 时间: 2011-7-13 16:16
im not sure here but i believe life refers to when a mortgage should complete payments, and maturity is when the mortgage is assumed to finish based on prepayment rates.作者: wxs1986 时间: 2011-7-13 16:16
Other way around Kurupt1.
WAM is based on the actual maturity dates of the loans
WAL is based upon the time that both scheduled and unscheduled principal payments are made作者: FinancialAnaly 时间: 2011-7-13 16:16
kurupt1 Wrote:
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> im not sure here but i believe life refers to when
> a mortgage should complete payments, and maturity
> is when the mortgage is assumed to finish based on
> prepayment rates.
You have it backwards. Maturity is the stated maturity of the loan and the life is based on prepayments.
