Task: Class Definition Understanding (ontology: Business_Finance/Financial_Industry_Business_Ontology)

Which of the following definitions best describes 'f f i e c down 300 prepay speed'?

A. Public Securities Association (PSA) speed used for the underlying collateral for cash-flow calculations in the "up 300" scenario.
B. The spread determined internally within the organisation from information available at their own trading desks. Further Notes Internal prices within a bank would be determined by surveying their own traders. So e.g. corporate desk trades these 30 bonds, get the daily spreads on those at the end of the day and calculate the price. The traders determine the pricing during the based on market movements. (this is all for OTC traded bonds, not exchange traded bonds).
C. Prepayment speed that results in the same average life as that computed for the Collateralized Mortgage Obligation (CMO), Asset Backed Securities (ABS) or Mortgage Backed Securities (MBS) using the Maturity Prepay Model.
D. Public Securities Association (PSA) speed used for the underlying collateral for cash-flow calculations in the "down 300" scenario.

Answer: Public Securities Association (PSA) speed used for the underlying collateral for cash-flow calculations in the "down 300" scenario.