What is the meaning of Overshooting?

Overshooting is the tendency of a pool of MBS to reflect an especially high rate of prepayments the first time it crosses the threshold for refinancing, specially if two or more years have passed since the date of issue without the weighted average coupon of the pool crossing the refinancing threshold.

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APABarry Goldsmith. (2010). overshooting. Retrieved September 22, 2026, from http://smartdefine.org/overshooting/definitions/1160039
ChicagoBarry Goldsmith. 2010. "overshooting" http://smartdefine.org/overshooting/definitions/1160039 (accessed September 22, 2026).
HarvardBarry Goldsmith 2010, overshooting, Smart Define, viewed 22 September, 2026, <http://smartdefine.org/overshooting/definitions/1160039>.
MLABarry Goldsmith. "overshooting" 21 October 2010. Web. 22 September 2026. <http://smartdefine.org/overshooting/definitions/1160039>
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