Burnout

Definition:

Depletion of a tax shelter's benefits. In the context of mortgage backed securities it refers to the percentage of the pool that has prepaid their mortgage.

Investing Essentials


Copyright © 2011 Campbell R. Harvey, Professor of Finance, Fuqua School of Business at Duke University

Term of the Day

Forward delivery

A transaction in which the settlement will occur on a specified date in the future at a price agreed upon on the trade date.

Subscribe to the Term of the Day via email Get the Term of the Day in your inbox!


Create your free portfolio