Question: Check all that is true about the SDA default model: If you know the beginning pool balance and assume a 200% SDA, you can calculate

Check all that is true about the SDA default model:

If you know the beginning pool balance and assume a 200% SDA, you can calculate what the CDR is for each month

SDA stands for standard default assumption

If you know the beginning pool balance and assume a 200% SDA, you can calculate what the CDX is for each month

Under the 100% SDA assumption no one defaults when their mortgage is a few months away from being paid out

SDA function for defaults takes the same shape as a PSA function for prepayments

The SDA takes into account maturity of the mortgage

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