Question: QUESTION 4 Check all that is true about the SDA default model: The SDA takes into account maturity of the mortgage Under the 100% SDA
QUESTION 4 Check all that is true about the SDA default model: 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 SDA function for defaults takes the same shape as a PSA function for prepayments SDA stands for Standard Default Assumption If you know the beginning pool balance and assume a 200% SDA, you can figure out what the CDR is for each month If you know the beginning pool balance and assume a 200% SDA, you can figure out what the CDX is for each month
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