April 28, 2015
By Bob Judge,
Editor, The CPR Report
In February, prepays drop back below 7% caused by a double digit decrease in both voluntary prepayments and defaults.
Overall prepayments fell by 27% to 6.48%.
Defaults remain below 2% for 18 months in a row. Looking at the largest sector, we saw the 20+year maturity prepayment speed fall by 32% to 6.06% from 8.88%. We saw speeds fall in five out of six categories of our maturity buckets.
The first quarter of 2015 should show a YOY decrease from 2014, the first time we have seen a decrease over any reasonable timeframe since 2011.
Check out the March 2015 CPR Report here.