In a recent research, Countrywide Securities explored the strategy of using the "current-carry" approach for the valuation of low-loan balance (LLB) and intermediate loan balance (ILB) pools.

This approach, unlike the option-adjusted spread calculations, seeks to measure the short-term value of the prepayment advantage of these pools versus generic average pools and TBA rolls. LLBs are loans with original balances of less than $85,000 while ILBs are loans with balances between $85,000 and $110,000.

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