Brinch, Brian M.; Stokes, Jeffrey R. - In: Agricultural Finance Review 61 (2001) 2, pp. 141-159
Unlike most residential mortgage‐backed securities, Farmer Mac agricultural mortgage‐backed securities (AMBS) have prepayment penalties. To quantify the impact of prepayment penalties on the cost of funding loans, prepayment behavior, and AMBS value, an analytic AMBS model is developed and...