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 figure
Check all that is true about the SDA default model:
| If you know the beginning pool balance and assume a 200% SDA, you can figure out what the CDR is for each month | ||
| Under the 100% SDA assumption noone defaults when their mortgage is a few months away from being paid out | ||
| If you know the beginning pool balance and assume a 200% SDA, you can figure out what the CDX is for each month | ||
| SDA function for defaults takes the same shape as a PSA function for prepayments | ||
| The SDA takes into account maturity of the mortgage | ||
| SDA stands for standard default assumption |
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