- Vintage is a colloquial term used to describe mortgage-backed securities (MBS) that have been “aged”.
- That is, they were issued quite a long time ago, and there are enough timely payments so that the risk of default is lower.
- Vintage is the age of an item in relation to the year it was created. This is a way to assess the inherent risk of MBS.
- However, two MBSs of the same year of release may have different levels of perceived risk and, as a result, different perceived values.