What is 'Yield Maintenance'

A prepayment premium that allows investors to attain the same yield as if the borrower made all scheduled mortgage payments until maturity.

Explaining 'Yield Maintenance'

Yield maintenance premiums are designed to make investors indifferent to prepayment. Furthermore, It also makes refinancing unattractive and uneconomical to borrowers.

Further Reading

Private vs. public lending: Evidence from covenants
escholarship.org [PDF]
… A review of two widely-used real estate finance textbooks in colleges and universities reveals only … the clause as a liquidated damages clause, which subjected it to an economic analysis to … Commercial Mortgage Prepayment: Prepayment Fee, Yield Maintenance, or Defeasance …

Joint production and maintenance planning with machine deterioration and random yield
www.tandfonline.com [PDF]
… A review of two widely-used real estate finance textbooks in colleges and universities reveals only … the clause as a liquidated damages clause, which subjected it to an economic analysis to … Commercial Mortgage Prepayment: Prepayment Fee, Yield Maintenance, or Defeasance …

The economic implications of corporate financial reporting
www.sciencedirect.com [PDF]
… A review of two widely-used real estate finance textbooks in colleges and universities reveals only … the clause as a liquidated damages clause, which subjected it to an economic analysis to … Commercial Mortgage Prepayment: Prepayment Fee, Yield Maintenance, or Defeasance …

The effects of the bank of japan's zero interest rate commitment and quantitative monetary easing on the yield curve: A macro-finance approach
link.springer.com [PDF]
… A review of two widely-used real estate finance textbooks in colleges and universities reveals only … the clause as a liquidated damages clause, which subjected it to an economic analysis to … Commercial Mortgage Prepayment: Prepayment Fee, Yield Maintenance, or Defeasance …

PROGRESS IN THE MAINTENANCE OF ROADS
trid.trb.org [PDF]
… A review of two widely-used real estate finance textbooks in colleges and universities reveals only … the clause as a liquidated damages clause, which subjected it to an economic analysis to … Commercial Mortgage Prepayment: Prepayment Fee, Yield Maintenance, or Defeasance …

The effects of the Bank of Japan's zero interest rate commitment and quantitative monetary easing on the yield curve: A macro-finance approach
papers.ssrn.com [PDF]
… A review of two widely-used real estate finance textbooks in colleges and universities reveals only … the clause as a liquidated damages clause, which subjected it to an economic analysis to … Commercial Mortgage Prepayment: Prepayment Fee, Yield Maintenance, or Defeasance …

Coping with the lionfish invasion: can targeted removals yield beneficial effects?
www.tandfonline.com [PDF]
… A review of two widely-used real estate finance textbooks in colleges and universities reveals only … the clause as a liquidated damages clause, which subjected it to an economic analysis to … Commercial Mortgage Prepayment: Prepayment Fee, Yield Maintenance, or Defeasance …

Debt finance and capital maintenance in current cost accounting
onlinelibrary.wiley.com [PDF]
… A review of two widely-used real estate finance textbooks in colleges and universities reveals only … the clause as a liquidated damages clause, which subjected it to an economic analysis to … Commercial Mortgage Prepayment: Prepayment Fee, Yield Maintenance, or Defeasance …