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sd-10-EFTA01385951Dept. of Justice

EFTA Document EFTA01385951

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27 March 2015 US Fixed Income Weekly Interpreting tradable implications and qualifications Our model is based on a regression of high-LTV and loan balance pay-ups on a small set of variables: • Refinance incentive: measured as the gross WAC on the TBA deliverable for a given period less the prevailing mortgage rate. This variable captures the price premium in the corresponding TBA, increased prepay risk in the TBA, and changes in the fair value of the dollar roll. As ref i incentive in

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Dept. of Justice
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sd-10-EFTA01385951
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