February 25, 2014
In December, prepays fell below 7% for the first time since April, finishing the year on a positive note.
While we finished 2013 with a print below 7%, this is only the third monthly reading below that benchmark recorded last year. For comparison purposes, all twelve months of 2012 were below 7%. After recording the first default CPR below 1% since 1999, this month increased by 85%, but still recorded the second lowest on record. The fact that the default CPR can increase by this amount and still be the second best ever shows how low defaults have fallen since peaking in April, 2010.