Difference between revisions of "Portfolio Stratification"
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== Definition == | == Definition == | ||
| − | '''Portfolio Stratification''' (also ''Pool Stratification'') is the practice of | + | '''Portfolio Stratification''' (also ''Pool Stratification'') is the practice of aggregating information and analyzing a [[Portfolio]] using characteristics perceived as significant in a given context. |
== Usage == | == Usage == | ||
Revision as of 12:29, 10 June 2021
Definition
Portfolio Stratification (also Pool Stratification) is the practice of aggregating information and analyzing a Portfolio using characteristics perceived as significant in a given context.
Usage
Stratification involves the production of summaries of pool characteristics (stratification tables) as they relate to attributes such as
- asset type
- vintage (origination period)
- size (amounts)
- geographical distribution and
- a variety of risk characteristics (credit scores, delinquency status etc.)
Issues and Challenges
- Skillful manipulation of the stratification segments can potentially help produce a misleading impression as to the actual nature of the portfolio
