Mortgage backed securities (MBS) use weighted average coupon (WAC) to determine the gross interest rates of multiple mortgages that underline the MBS. The WAC represents the average interest rate of different pools of mortgages with varying interest rates. The original WAC may be different than the present WAC as different mortgages are paid off at different rates.
Related information about weighted average coupon:
- Weighted Average Coupon (WAC) Definition | Investopedia
The weighted-average gross interest rates of the pool of mortgages that underlie a mortgage-backed security (MBS) at the time the securities were issued.
- What is weighted average coupon? - InvestorWords.com
Definition of weighted average coupon: Mortgage backed securities (MBS) use weighted average coupon (WAC) to determine the gross interest rates of multiple ...
- Weighted average Coupon - Financial Dictionary - The Free Dictionary
The weighted average of the gross interest rates of mortgages underlying a pool as of the pool issue date; the balance of each mortgage is used as the ...
- Mortgage-backed security - Wikipedia, the free encyclopedia
7.1.1 Weighted-average maturity; 7.1.2 Weighted-average coupon. 7.2 Theoretical pricing. 7.2.1 Interest rate risk and prepayment risk; 7.2.2 Credit risk ...
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- Weighted average Coupon Definition - NASDAQ.com
Weighted average Coupon: read the definition of Weighted average Coupon and 8000+ other financial and investing terms in the NASDAQ.com Financial ...
- What is weighted average coupon? - BusinessDictionary.com
Definition of weighted average coupon: The average, using the balance of each mortgage as the weighting factor, of the gross interest rates of the mortgages ...