CDR (Constant Default Rate)

Annualised measure of the percentage of outstanding principal defaulting in a given period. CDR × (1 − Recovery Rate) = net loss rate. CDR is a gross measure.

Recovery Rate

The proportion of a defaulted loan balance ultimately collected. Secured consumer auto: 50–65%; unsecured consumer: 5–20%; equipment: 40–60%.

DPD (Days Past Due)

The number of calendar days since a scheduled payment was due but not received. 30–59 DPD: early delinquency; 60–89 DPD: serious delinquency; 90+ DPD: default in most consumer pools.

Vintage Analysis

Performance tracking of loans originated in the same calendar period (month, quarter, year), allowing like-for-like comparison across cohorts. The primary tool for identifying underwriting deterioration.