• 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|
Teaching Children the Financial Facts of Life: Showing the importance of saving, spending wisely and sharing with others More...
Let the refining and improving of your own life keep you so busy that you have little time to criticize others. - H. Jackson Brown, Jr.