Portfolio Runoff

A decrease in the value and size of portfolios investing in mortgages and mortgage-backed securities.


This decrease occurs because of homeowners capitalizing on lowering interest rates through refinancing. The resulting effects usually mean lower revenues for the portfolio holders as the cash flow from mortgage interest decreases.



Asset Allocation within Fixed Income - An investor's fixed-income portfolio can easily beat the average bond fund. Learn how and why!

Trying To Predict Interest Rates - Understand the various factors that influence them so you can learn to anticipate their movements for profit.

Forces Behind Interest Rates - Get a deeper understanding of the importance of interest rates and what makes them change.
Related Terms

Fannie Mae

Ginnie Mae

Mortgage

Mortgage Backed Security

Prepayment Risk

Word Search:

Categories