Just what everyone has been waiting for, another CPR vector analysis. I have at least two other CPR vector posts. This one allows for your own CPR model, with CPRs potentially changing each year. I say potentially, because one could keep the same CPR for numerous years. First enter a description of the pool on sheet “Amortization”.
Then on sheet “Vector” enter the CPR for each year of the life of the pool from the year issued:
The year column will ask for as many years CPRs as needed, so enter a CPR only next to a year.
The other calculations on the “Vectors” sheet are needed for the monthly CPRs from issue month and from the current month these CPRs will start to apply. The chart will show the annual vectors and where you are currently:
Back to Sheet “Amortization”, you will see the pool being amortized along with your monthly CPRs.