DEFINITION of 'DealerMedian Prepayment Speed'
The median value of all Wall Street securities dealers' prepayment speed estimates for the underlying mortgages used to form mortgagebacked securities. The prepayment speed estimates used by banks and other regulated financial enterprises to value and manage mortgagebacked security portfolios are a concern to regulators. To that end, dealermedian speeds are widely used as conservative estimates.
INVESTOPEDIA EXPLAINS 'DealerMedian Prepayment Speed'
The dealermedian prepayment speed is an important consideration, as it is the median measure of how fast mortgage borrowers will prepay their mortgages. Prepayment speed estimates are also a very important variable in mortgagebacked securities valuation and analysis. Investors and traders compete to develop more accurate proprietary models in order to outperform each other in the broader market.

Collateralized Mortgage Obligation ...
A type of mortgagebacked security in which principal repayments ... 
Prepayment
The satisfaction of a debt or installment payment before its ... 
Public Securities Association Standard ...
An assumed monthly rate of prepayment that is annualized to the ... 
Conditional Prepayment Rate  CPR
A loan prepayment rate that is equal to the proportion of the ... 
MortgageBacked Security (MBS)
A type of assetbacked security that is secured by a mortgage ... 
Planned Amortization Class (PAC) ...
A class of tranche in a planned amortization class (PAC) bond ...

What is the difference between the rule of 70 and the rule of 72?
The rule of 70 and the rule of 72 give rough estimates of the number of years it would take for a certain variable to double. ... Read Full Answer >> 
On what basis does the sustainable growth rate fluctuate?
The main difference between a bond’s yield to maturity, or YTM, and the spot rate is that the YTM uses the same interest ... Read Full Answer >> 
What are some classes I can take to prepare for the Series 6 exam?
The riskreturn tradeoff for bonds is the increased yield investors can obtain from corporate and other types of bonds that ... Read Full Answer >> 
What level of return on equity is average for companies in the chemicals sector?
The modified duration is an adjusted version of the Macaulay duration and takes into account how interest rate fluctuations ... Read Full Answer >> 
What is the average profit margin of a company in the chemicals sector?
Macaulay duration and modified duration are used in fixed income markets to determine a bond's duration. The Macaulay duration ... Read Full Answer >> 
What is the risk return tradeoff for bonds?
Macaulay duration and modified duration are mainly used to calculate the durations of bonds. The Macaulay duration calculates ... Read Full Answer >>

Bonds & Fixed Income
Profit From Mortgage Debt With MBS
Mortgagebacked securities can offer monthly income, a fixed interest rate and even government backing. 
Mutual Funds & ETFs
The Bond Market: A Look Back
Find out how fixedincome investments evolved in the past century and what it means today. 
Bonds & Fixed Income
Asset Allocation In A Bond Portfolio
An investor's fixedincome portfolio can easily beat the average bond fund. Learn how and why! 
Investing
The Case For Stocks Today
Last week, U.S. equities advanced with the S&P 500 Index notching new records. Investors are now getting nervous with rate and currency volatility spiking. 
Mutual Funds & ETFs
Why You May Want To Be (And Stay) In Bonds
Bonds are complicated, and it’s easy to feel intimidated or confused. Fortunately, you don’t need to be a numbers geek to be an informed investor. 
Investing
Why Some Investors Are Tilting Toward TIPS
Last month’s fiveyear TIPS auction drew nearly $48 billion in interest, a sign of recent renewed demand for this inflation indexed asset among investors. 
Mutual Funds & ETFs
The EMAG Emerging Mkts Bond ETF: Worth the Risk?
The Market Vectors Emerging Markets Aggregate Bond ETF (EMAG) might offer longterm rewards, but is now the best time to jump in? 
Mutual Funds & ETFs
5 Dividend ETFs with Growth Potential
A quick look at a few ETFs with substantial growth potential. 
Bonds & Fixed Income
Using Excel PV Function to compute Bonds PV
To determine the value of a bond today  for a fixed principal (par value) to be repaid in the future at any predetermined time  we can use an Excel spreadsheet. 
Investing
Should You Buy Marijuana Stock?
The legalization of marijuana has created a new investment niche: pot stocks.