• (p. pr. & vb. n.) of Overshoot
See exchange rate overshooting.
The tendency of a pool of MBS to reflect an especially high rate of prepayments the first time it crosses the threshold for refinancing, specially if two or more years have passed since the date of issue without the weighted average coupon of the pool crossing the refinancing threshold.
Describes 'a situation where the initial reaction of a variable to a shock is greater than its long-run response.' Source: Romer, 1996, p 7
The tendency of a pool of MBSs to reflect an especially high rate or prepayments the first time it crosses the threshold for refinancing, especially if two or more years have passed since the date of issue without the WAC of the pool having crossed the refinancing threshold. 
The tendency of a pool of MBS to reflect an especially high rate of prepayments the first time it cr