With no explanation, label text_A→text_B with either "not_related" or "related".
text_A: Honey to the B was the first album of an American singer and actress.
text_B: Prepayment is the early repayment of a loan by a borrower , in part or in full , often as a result of optional refinancing to take advantage of lower interest rates .. optional. Option ( finance ). refinancing. refinancing. In the case of a mortgage-backed security -LRB- MBS -RRB- , prepayment is perceived as a financial risk -- sometimes known as `` call risk '' -- because mortgage loans are often paid off early in order to incur lower interest payments through cheaper refinancing .. refinancing. refinancing. mortgage-backed security. mortgage-backed security. financial risk. financial risk. The new financing may be cheaper because the borrower 's credit has improved or because market interest rates have fallen ; but in either of these cases , the payments that would have been made to the MBS investor would be above current market rates .. credit. credit rating. market. Market ( economics ). Redeeming such loans early through prepayment reduces the investor 's upside from credit and interest rate variability in an MBS , and in essence forces the MBS investor to reinvest the proceeds at lower interest rates .. interest rate. interest rate. credit. credit rating. If instead the borrower 's opportunities deteriorate -LRB- creditworthiness declines or market interest rates rise -RRB- , then the borrower loses the incentive to refinance , since the existing mortgage interest rate can not be reduced with a new mortgage .. interest rate. interest rate. market. Market ( economics ). The fact that MBS investors are exposed to downside prepayment risk , but rarely benefit from it , means that these bonds must pay an incrementally higher interest rate than similar bonds without prepayment risk , to be attractive investments .. interest rate. interest rate. -LRB- This is the embedded `` option cost '' that results in a lower option-adjusted spread . -RRB-. option-adjusted spread. option-adjusted spread. Similar issues arise for callable bonds in the American municipal , corporate , and government agency sectors .. municipal. municipal bond. corporate. corporate bond. government agency. government-sponsored enterprise. As another way to compensate for prepayment risk -LRB- which is a reinvestment risk -RRB- , a prepayment penalty clause is often included in the loan contract .. reinvestment risk. reinvestment risk. `` Soft '' prepayment terms can allow prepayment without penalty if the home is sold .. `` Hard '' prepayment terms do not allow any exceptions without penalty .. Bond issuers can mitigate some prepayment risk by issuing what are called `` super sinker '' bonds .. Super sinkers are usually home-financing bonds that repay bondholders their principal quickly if homeowners prepay their mortgages .. In other words , mortgage prepayments are used to retire a specified maturity .. Super sinkers are likely to be paid off in a relatively short time .. As a result , the bondholders may receive higher long-term yields after only a short period .. Individual borrowers who expect to prepay their loans early should generally favor a combination of lower principal balance and higher interest rate -LRB- which stops accruing after prepayment -RRB- , rather than a below-market interest rate and higher principal balance -LRB- which much be paid in full , regardless of prepayment -RRB- .. interest rate. interest rate. market. Market ( economics ). In general , only borrowers who expect to keep their loans for many years should opt for below-market interest rates by paying mortgage origination points or forgoing automobile rebates .. market. Market ( economics ). Homeowner prepayment decisions are impacted by a number of variables and are notoriously hard to predict , adding another layer of uncertainty to investing in MBS markets .. Prepayment speeds can be expressed in SMM -LRB- Single Monthly Mortality -RRB- , CPR -LRB- Conditional Prepayment Rate , which is the annually compounded SMM -RRB- , or PSA -LRB- percentage of the Public Securities Association prepayment model -RRB- .. Public Securities Association prepayment model. PSA prepayment model. For mortgages at least 30 months old , 100 % PSA = 6.0 % CPR = 0.51 % SMM , equivalent to the full prepayment of 6 % of a pool 's remaining mortgages each year .
not_related.