Difference between revisions of "Seasoning"
From Open Risk Manual
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== Definition == | == Definition == | ||
| − | The '''Seasoning''' of a Portfolio of Receivables ( | + | The '''Seasoning''' of a Portfolio of Receivables (also in a [[Securitisation]] context) denotes the time period over which newly originated receivables have been observed. This time period is important as the full behavioral profile of a given pool may only reveal over a time period long enough to include, e.g. a range of different (macro)economic environments |
== Details == | == Details == | ||
| Line 22: | Line 22: | ||
[[Category:Securitisation Assets]] | [[Category:Securitisation Assets]] | ||
[[Category:Credit Scorecard Development]] | [[Category:Credit Scorecard Development]] | ||
| + | [[Category:Prepayment Risk]] | ||
{{#set:Has Formula = False | Has Object = False | Has Lambda = False | Field Type= Legal Text}} | {{#set:Has Formula = False | Has Object = False | Has Lambda = False | Field Type= Legal Text}} | ||
__SHOWFACTBOX__ | __SHOWFACTBOX__ | ||
Revision as of 13:04, 1 December 2022
Definition
The Seasoning of a Portfolio of Receivables (also in a Securitisation context) denotes the time period over which newly originated receivables have been observed. This time period is important as the full behavioral profile of a given pool may only reveal over a time period long enough to include, e.g. a range of different (macro)economic environments
Details
Seasoning of a pool of receivables allows (better) estimation of risk factors and risk outcomes such as the Default Rate or Prepayment Rate
Variations
None
Issues and Challenges
None
See Also
None
Disclaimer
- This information is provided as is without any representation of correctness, completeness or suitability for any purpose whatsoever. Refer to actual securitisation prospectuses for the definitive terms applicable in each case
- Definitions, detailed descriptions and other content may change at any time as further examples or relevant aspects are introduced
