What Is Vintage Loss?

Vintage Analysis in Finance

The vintage loss rate is calculated as the ratio of loan losses to the original vintage balance for each vintage period. Vintage refers to the month or quarter when an account was opened or a loan granted.

Vintage Application in Other Contexts

Vintage properties may lack modern amenities like air conditioning or stainless steel appliances. This makes them less desirable to buyers and renters. Vintage diversification means investing in properties built in different years.

Lenders use vintage to judge business loans. Vintage is the time a business has operated. Lenders want three years of history to show commitment. So vintage starts the 10-year lifespan of private equity funds. Distributions waterfall allocates returns to limited and general partners.

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