Prepayment speeds on lower coupon, unseasoned conventional issues accelerated faster than expected. At the same time, older vintages and premium speeds held flat or slowed inline with expectations.

In the Fannie Mae sector, 2002 6s jumped nearly 20% to 26% CPR, while 2001 issues were up 10% to 44% CPR. In 6.5s, 2002 vintages gained 7% to 45% CPR; 2001 issues held flat. Lastly, in the 7% sector, 2002s rose 3% to 45% CPR, while older vintages slowed 1% to 2% CPR.

Subscribe Now

Access to a full range of industry content, analysis and expert commentary.

30-Day Free Trial

No credit card required. Access coverage of the securitization marketplace, including breaking news updated throughout the day.