MBS-WAM

between, average, difference

wam = weighted average maturity
whats the difference between wam and weighted average life.

thx

FinancialAnaly

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发表于 2011-7-13 16:16 | 只看该作者

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.

NO EXCUSES

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wxs1986

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发表于 2011-7-13 16:16 | 只看该作者

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

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huangxiaoxie

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发表于 2011-7-13 16:16 | 只看该作者

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.

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tobeornottobe