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What Is a Weighted Average Coupon? The weighted average coupon (WAC) is an essential measure that represents the average gross interest rate for a pool of mortgages packaged and sold to investors as mortgage-backed securities (MBS). The WAC is crucial because it provides insights into the pre-pay characteristics of these
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Introduction to the Bloomberg Aggregate Bond Index The Bloomberg Aggregate Bond Index (Agg) is a critical benchmark for investors interested in fixed income markets. This widely acclaimed index tracks the performance of investment-grade bonds across multiple sectors, including U.S. Treasuries, corporate bonds, mortgage-backed securities (MBS), asset-backed securities (ABS), and municipal
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