Weighted average life


Also found in: Dictionary, Thesaurus, Medical, Acronyms, Encyclopedia, Wikipedia.
Related to Weighted average life: Weighted average maturity

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 ?
These actions reflect the material impact of the shortened weighted average life on available excess spread, as well as the impact of portfolio credit deterioration on Fitch's assumed default probabilities.
The first A1 AUD240m tranche with a weighted average life of 3.
The weighted average life (WAL) has decreased to 2 years from 3 years at close, implying that the loans will fully turnover during the reinvestment period.
The completed portfolio is expected to have a weighted average credit rating of BBB and an expected weighted average life of 9.
Since closing, the weighted average life of the portfolio has continued to decrease and is currently listed at 5.
8m triple-A rated tranche with a weighted average life of 6.

Full browser ?