What goes into the pricing of a perfoming note?
I'm just exploring note investing and I'm looking for some pointers on how performing notes are priced. I'm hoping there are general guidelines. Looking around quickly on someplace like FCI (not a great resource from what I understand, but I'm just looking to get a feel for the market) it looks like there is a discount for unpaid balances under about $80K, but where notes above that are offered at more than 100% UPB.
I assume a lower LTV and a higher interest rate would drive the price up, but I have not yet figured out the relationship or rules of thumbs. Thanks for any insight.