This is group coursework and the topic is to discuss the weakness of the reprici
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This is group coursework and the topic is to discuss the weakness of the repricing model. My part is to write one of the weaknesses of the repricing model(200 words): the problem of runoffs( ignores effects of rate-insensitive runoffs, and so on…)
“Runoffs” is my only part so do not include any other weaknesses in here, just write this weakness clearly: what, why, how…as specific as possible, maybe include some examples to make it more clear.
I can upload our lecture note if you need it, but the use of notes is minimal. This is 200 words, so there should be no more than 1 reference needed, please do use your own words to explain the weakness of runoffs in the repricing model.