Average life in fixed income
Posted: December 17th, 2007, 3:56 am
by boon22
Can someone please explain me the concept of Averagr life in fixed income?Is it in use only at the MBS and ABS markets?otr that it is in use also at the bonds market?If yes-what is the use in the bonds market?Thanks.
Average life in fixed income
Posted: December 19th, 2007, 8:44 pm
by bilbo1408
As far as I have ever heard, it is the average life of the underlying asset in the case of the MBS or ABS assuming full length to maturity. I have never heard the term outside of that, but I have been known to have been corrected.