prepayment risk
Definition
Probability that, if interest rates fall, debtors or mortgagors will pay off their obligations (by refinancing them at lower current rates) thus forcing the investor or lender to reinvest at lower rates.
Popular 'Banking, Commerce & Finance' Terms
prepayment risk in the news
Loading...
This content can be found on the following page:
http://www.businessdictionary.com/definition/prepayment-risk.html
