If a MBS is just described as “seasoned,” are we to assume that it has passed the 30 month time period where CPR increases? Or does seasoned just mean it’s not newly issued (so it’s still possible that it’s in the intial 30 month ramp up phase in terms of prepayment). I know they’ll probably give us the WAM so we’ll know exactly how seasoned it is, but still something I’d like to know.
i think seasoned is just not newly issued. like on the CFA mock they gave a questions that has a MBS that’s “17 month of seasoning.” so still within the 30 month period.
Seasoning means passage of time, so it starts from the very beginnig and lasts till 30th month when we say that the security is seasoned.