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  • Monday, April 28, 2025
  • The Financial Encyclopedia
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Extension Risk

The risk that arises during periods of rising interest rates when borrowers tend to pay off their loans later than...

    Balloon Risk

    The risk that a borrower will fail to make a balloon or lump-sum payment at maturity. Balloon risk may arise...

      PAC Band

      A PSA range within which the underlying mortgage collateral should remain over time so that a PAC bond would stick…

        Inverse Floating Rate CMO

        A collateralized mortgage obligation (CMO) that is structured as inverse floater tranches. The CMO will earn interest at rates that...

          Inverse Floater CMO

          A collateralized mortgage obligation (CMO) that is structured as inverse floater tranches. The CMO will earn interest at rates that...