How to Price Fixed Rate Loans Without Prepayment Provisions

We are often asked by lenders about pricing differentials for fixed-rate commercial loans with and without prepayment provisions.  For example, if a bank were to price a loan with a yield maintenance provision the loan would have a much longer expected life, and under most circumstances the bank would not have negative impact if rates…

Read More about How to Price Fixed Rate Loans Without Prepayment Provisions

How to Price Fixed Rate Loans Without Prepayment Provisions

We are often asked by lenders about pricing differentials for fixed-rate commercial loans with and without prepayment provisions.  For example, if a bank were to price a loan with a yield maintenance provision the loan would have a much longer expected life, and under most circumstances the bank would not have negative impact if rates…

Read More about How to Price Fixed Rate Loans Without Prepayment Provisions