Continuous Workout Mortgage (CWM) balance and payments are indexed using market-observable house price index in an economic environment with prepayments. Our main results include: (a) explicit modelling of repayment and interest-only CWMs; (b) closed form formulas for mortgage payment and...

We focus on factors that drive the dynamics of commodity prices. We highlight the capital budgeting implications of three highly–cited, nested, multi–factor models for commodity prices that have been successful in empirical investigations. Competing assumptions regarding commodity prices and...