8.13.1 Prepayment Methodologies and Rules

You can use any of the following five methods in a Prepayment rule to model the prepayment behavior of instruments:

  • Constant Prepaymentmethod
  • Prepayment Modelmethod
  • PSAmethod
  • Arctangentmethod
  • ADCo Prepaymentmethod

For more information on ADCo Prepayment method, see the Andrew Davidson and Company (ADCo) Prepayment Method.