Accrued Interest

Accrued interest is the interest that has accumulated on a loan or other financial asset but has not yet been paid. Accrued interest is typically paid when the loan or asset is sold or when the borrower makes a payment. In securitisation, accrued interest is typically included in the securitisation pool. This means that investors in the securitisation will receive the accrued interest when the securitisation pool is sold or when the borrowers make payments.

Accrued interest can have a significant impact on the value of a securitisation. If the accrued interest is large, it can reduce the amount of money that investors receive when the securitisation is sold.
Additionally, accrued interest can make it more difficult for investors to sell their securitisation notes if the market for securitisations is illiquid. Investors should carefully consider the risks of accrued interest before investing in securitisations.

Here are some additional details about accrued interest:

- Accrued interest is the interest that has accumulated on a loan or other financial asset but has not yet been paid.
- Accrued interest is typically paid when the loan or asset is sold or when the borrower makes a payment.
- In securitisation, accrued interest is typically included in the securitisation pool.
- Accrued interest can have a significant impact on the value of a securitisation.
- Investors should carefully consider the risks of accrued interest before investing in securitisations.