Business and Personal Finance Dictionary

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• SPEED
  
  The rate at which an MBS prepays. An MBS with little or no prepayments is said to have a slow speed. An MBS with significant prepayments is said to have a high speed or to be speeding. Since pools that prepay faster than anticipated can perform much worse than investors hoped, investors only half jokingly say that speed kills. See CPR, prepayment estimate, and PSA for information about measures of speed.
  
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