Hi David,
So sorry to ask this.
As per what i could understand from tuckman, IO is like a security with a fixed set of cash flows. As rates fall and mortgages begin to prepay, the cash flows of an IO vanish. And it exhibits Negative DV01/ duration.
Now for Q. 414.2, W said 'The prepayment...
@VINCENTP all the topics are same.
Though i do feel Lam, Crouhy and such theory readings are difficult to digest all at once. Pair them up with some quantitative topics as well. Dont fully stick to GARP Reading plan.
Thanks Nicole!
However, i do agree with you on major course still remaining the same.
So I guess I am gonna start with existing and once everything is updated, I'll cover up the rest and chill.
Hey yall i gave my exam yesterday n i totally agree with you @justinturner.. i am dissapointed. its utter dissappointment for me. But lets hope for the best.
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