Delinquency
Asset-Backed Securities glossary · Cash Flow Waterfalls & Triggers
Definition
Past due status of a receivable; typically tracked by aging buckets (30-day, 60-day, 90-day).
Delinquency in plain English
Delinquency just means a payment is late — someone owed money on a specific date and didn't pay on time. Lenders don't treat one day late the same as three months late, so they sort overdue accounts into 'aging buckets' by how far behind they are: 30 days past due, 60 days, 90 days, and so on. It's like a teacher tracking not just who turned homework in late, but HOW late — a day late is a shrug, a month late is a real red flag. The deeper the bucket, the more likely that money never gets paid back at all.
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