Business and Personal Finance Dictionary

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• BURNOUT
  
  Is a phenomenon in the mortgage market. It represents the tendency of pools to become less sensitive to interest rate declines with the passage of time. While there may have been a surge in prepayments due to declining interest rates, the remaining mortgages do not prepay as quickly as the previous ones in the pools. It is implied that these remaining mortgages are less vulnerable to further accelerated prepayment risks.
  
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