Weighted average life

(redirected from Weighted Average Lives)

Weighted average life

Weighted Average Life

The amount of time for the principal on a loan or a mortgage to be paid off. The length of the weighted average life depends on the amount of principal paydowns and how often they are made. Once the WAL is calculated, one can determine how long it will take to pay off half of the remaining principal.
References in periodicals archive ?
The class A-1 and A-2 notes were issued with weighted average lives of three years while the class A-3 and A-4 notes were issued with weighted average lives of four and five years, respectively.
The Notes, which could be issued with fixed or floating interest payments, are likely to have expected weighted average lives of three to five years.
The transition bonds are to be issued Thursday, March 25, in seven separate classes with weighted average lives ranging from 1.
Other structural features include a yield supplement account, the purpose of which is to augment interest collections on those receivables whose APR is less than the average bond rate weighted by the time weighted average lives of the notes plus the 1% servicing fee.
The stability of these PACs is particularly notable given their long weighted average lives (WAL).

Full browser ?