Seasoning

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