Vintage refers to the year in which a securitisation was issued. Vintage is sometimes referred to as "year of issue".
The vintage of a securitisation is important because it can be used to assess the risk of the securitisation. Securitisations that were issued during periods of high interest rates or during periods of economic recession are more likely to default than securitisations that were issued during periods of low interest rates or during periods of economic growth.
Here are some of the applications of vintage in securitisation:
- To assess the risk of the securitisation: The vintage of the securitisation can be used to assess the risk of the securitisation. Securitisations that were issued during periods of high interest rates or during periods of economic recession are more likely to default than securitisations that were issued during periods of low interest rates or during periods of economic growth.
- To manage the securitisation: The vintage of the securitisation can be used to manage the securitisation. For example, if a securitisation was issued during a period of high interest rates, the issuer may want to consider selling the securitisation to reduce the risk of default.
- To track the performance of the securitisation: The vintage of the securitisation can be used to track the performance of the securitisation. For example, an investor may want to track the performance of securitisations that were issued during a particular period of time to see how they have performed over time.
Vintage is a valuable tool for securitisation. It can be used to assess the risk of the securitisation, manage the securitisation, and track the performance of the securitisation.