I want to understand the distinction between CPR and CPY. I'm curious about their definitions, applications, and how they differ from each other.
7 answers
SamuraiWarriorSoulful
Thu Nov 21 2024
Specifically, a 100% CPY equates to a 0% CPR until the end of the yield maintenance (YM) period.
EclipseChaser
Thu Nov 21 2024
Constant Prepayment Yield (CPY) serves as an indicator of the prepayment speed in CMBS.
Andrea
Thu Nov 21 2024
It is a metric used to understand how quickly the principal of a mortgage-backed security is being repaid.
SamuraiSoul
Thu Nov 21 2024
When CPY is at 100%, it signifies a specific relationship with the Conditional Prepayment Rate (CPR).
HanbokGlamour
Wed Nov 20 2024
After the YM period concludes, the CPR then jumps to 100%.