2020/03/30 - Initial Weighted Average Remaining Term

You are used to the Weighted Average Remaining Term indicator for spot reports, i.e. the weighted average of the remaining time before cash flows are received on the analysis date.

Now, you can also use the Initial Weighted Average Remaining Term indicator, which is the weighted average of the remaining time before cash flows are received on the start date of the transaction. For a derivative, the weighted average remaining term is 0. In a portfolio, the weighted average remaining term is computed using an average of each weighted average remaining term, weighted by the outstanding balance of the loan.

WeightedAverageRemainingTerm_EN.png

 

See Debt Indicators for more details.

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