In an attempt to standardize RMBS data across Europe, the Middle East and Africa (EMEA), Moody's Investors Service said it is looking to hedge through the inconsistencies in redemption rate reporting. The move was made to shed more light on Constant Prepayment Rates (CPRs) and Total Redemption Rates (TRRs).

"When analyzing structured finance transactions through the use of cash flow models, one key determinant is the repayment and prepayment behavior," said Moody's analyst Johannes Ebner, who authored the report. "In order to determine the received principal that contributes to the pay-down of the issued notes, it is necessary to have reliable payment assumptions for the underlying collateral."

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