Question: Check all that is true about the SDA default model: Check all that is true about the SDA default model: If you know the beginning

Check all that is true about the SDA default model:

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 CDX is for each month The SDA takes into account maturity of the mortgage Under the 100% SDA assumption no one 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 CDR is for each month SDA function for defaults takes the same shape as a PSA function for prepayments SDA stands for Standard Default Assumption

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