• Payment of a financial obligation later than is expected or required, as in lead and lag. Also, the number of periods that an independent variable in a regression model is held back in order to predict the dependent variable.

 Embedded terms in definition
 Referenced Terms
 Lag response of prepayments: There is typically a Lag of about three months between the time the weighted average coupon of an MBS pool has crossed the threshold for refinancing and an acceleration in prepayment speed is observed.

 When issued trades: Typically there is a Lag between the time a new bond is announced and sold and the time it is actuafly issued. During this interval, the security trades, wi, "when, as, and if issued."

 Related Terms
 Lag response of prepayments

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