weighted average life (WAL) definition
weighted average life (WAL) means the average length of time to the legal maturity of all the underlying assets in the fund reflecting the relative holdings in each asset;
weighted average life (WAL) for each asset shall mean the weighted average number of years until 100% of the outstanding principal is expected to be repaid, rounded to the nearest whole number but not less than 1. For bonds or preferred stocks that are perpetual or mature after 30 years, the WAL shall be 30. Market conventions and other approximations are acceptable for the purposes of this subsection.
Examples of weighted average life (WAL) in a sentence
In the case of asset-backed securities, a maximum weighted average life (WAL) of 3 years from settlement date will apply.