Roll Rates:
A method to measure expected delinquency. The underlying assumption is that future accounts will continue to flow through delinquent buckets as they have in the past. Dividing the current month's delinquency bucket by the prior delinquency bucket, calculates the month's roll rates in the previous month.
Static Pool Analysis:
A pool of loans from a specific time period that has ongoing analysis conducted upon it. Analysis would examine such things as delinquency, prepayments and rate of return.
Vintage Analysis:
Similar to static pool analysis except that only delinquency and arrears are analyzed from a given pool of loans. This analysis provides insights about how delinquency for a pool of loans from the same time evolves. As well, changes in credit policy can be monitored using this method.
No comments:
Post a Comment