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- 2011-7-11
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- 2014-8-6
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Not sure what your book says but commercial mortgages are usually floating rate and residential mortgages are usually fixed rate. That means that interest rate fluctuations cause more prepayments for residential mortgages than commercial mortgages. But, in general, I would say that it's not a particularly relevant comparison because what really matters is the characteristics of the security you own, not the prepayments for this humongous class of securities. |
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