DEFINITION of 'Weighted Average Remaining Term  WART'
The remaining life of an assetbacked security or a mortgagebacked security. It is measured in months, and is used to denote the remaining maturity of the mortgages or assets that comprise a pool. The weighting factor used in calculating this average is the balance of each mortgage loan in the pool. Also known as weighted average maturity.
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BREAKING DOWN 'Weighted Average Remaining Term  WART'
The weighted average remaining term is affected by prepayments of the mortgages included in the mortgagebacked security. Therefore, if prepayment is high, the weighted average remaining term would decrease. The prepayment rate measures how quickly home owners pay off their mortgage, a metric which depends on market interest rates.
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Residential MortgageBacked Security ...
A type of security whose cash flows come from residential debt ... 
Weighted Average Maturity  WAM
The weighted average of the time until all maturities on mortgages ... 
MortgageBacked Security (MBS)
A type of assetbacked security that is secured by a mortgage ... 
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Pool Factor
The percentage of the original principal that is left to be distributed ... 
Principal Only Strips  PO
A type of fixedincome security where the holder is only entitled ...
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