Performance Metrics

WAC

status: draft

Weighted average coupon. The balance-weighted average contractual interest rate on a pool.

What to watch

WAC is not the same as realized yield. Fees, delinquencies, defaults, prepayments, and servicing practices change actual cash yield.

Referenced in 12 topics

Cash flow modeling accounting-valuation Collateral analysis accounting-valuation Collateral analytics checklist appendix Due diligence question bank documentation Hedging and interest rate mechanics mechanics Ongoing portfolio management operations-lifecycle Ongoing portfolio management (capital provider) playbooks Performance metrics accounting-valuation Pool formation and onboarding operations-lifecycle Rating agencies counterparties Rating agency engagement for funds playbooks Stratification analysis accounting-valuation