Start Setting Realistic Expectations
Retro Pricing is a calculation method that goes back in time to calculate the Par, Cap or Spread Rates at the beginning of the back-test time period. The Traditional method of back-testing uses today’s Par, Cap or Spread Rates and applies them backwards. The traditional method paints a picture for clients that can never happen! Retro Pricing gives the client a view of what would have happened if they could go back in time and actually purchase this product and method. Retro Pricing is much closer to reality!