What is the meaning of Burnout?

Burnout is a phenomenon in the mortgage market. It represents the tendency of pools to become less sensitive to interest rate declines with the passage of time. While there may have been a surge in prepayments due to declining interest rates, the remaining mortgages do not prepay as quickly as the previous ones in the pools. It is implied that these remaining mortgages are less vulnerable to further accelerated prepayment risks.

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APABarry Goldsmith. (2010). burnout. Retrieved September 20, 2026, from http://smartdefine.org/burnout/definitions/1149132
ChicagoBarry Goldsmith. 2010. "burnout" http://smartdefine.org/burnout/definitions/1149132 (accessed September 20, 2026).
HarvardBarry Goldsmith 2010, burnout, Smart Define, viewed 20 September, 2026, <http://smartdefine.org/burnout/definitions/1149132>.
MLABarry Goldsmith. "burnout" 21 October 2010. Web. 20 September 2026. <http://smartdefine.org/burnout/definitions/1149132>
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