What Is a Delayed Draw Term Loan? A delayed draw term loan (DDTL) is a special feature in a term loan that lets a borrower withdraw predefined amounts of a total pre-approved loan amount. The withdrawal periods—such as every three, six, or nine months—are also determined in advance. A DDTL is included as a provision
What Is Delayed Perpetuity? Perpetuity is a series of fixed payments that last an infinite period. Delayed or deferred perpetuity is a perpetual stream of cash flows that begins at a predetermined date in the future. Fixed dividend-paying preferred shares are often valued using a perpetuity formula. If the dividends originate in five years, rather
What Is Deleveraging? Deleveraging is when a company or individual attempts to decrease its total financial leverage. In other words, deleveraging is the reduction of debt and the opposite of leveraging. The most direct way for an entity to deleverage is to immediately pay off any existing debts and obligations on its balance sheet. If
What Is a Delinquency Rate? Delinquency rate refers to the percentage of loans within a financial institution’s loan portfolio whose payments are delinquent. When analyzing and investing in loans, the delinquency rate is an important metric to follow; it is easy to find comprehensive statistics on the delinquencies of all types of loans. How Delinquency
What Does Delinquent Mean? The term delinquent refers to the state of being in arrears. When someone is delinquent, they are past due on their financial obligation(s), such as a loan, credit card, or bond payments. This means a borrower’s payments are not made to satisfy their debt(s) in a timely manner. Delinquent entities can
A delinquent mortgage is a home loan for which the borrower has failed to make payments as required in the loan contract. A mortgage is considered delinquent when a scheduled payment is not made on or before the due date. If the borrower can’t bring the payments on the mortgage current within a certain period of
What Are Deliverables? The term “deliverables” is a project management term that’s traditionally used to describe the quantifiable goods or services that must be provided upon the completion of a project. Deliverables can be tangible or intangible in nature. For example, in a project focusing on upgrading a firm’s technology, a deliverable may refer to
What Is Delivered-at-Place (DAP)? Delivered-at-place (DAP) is an international trade term used to describe a deal in which a seller agrees to pay all costs and suffer any potential losses of moving goods sold to a specific location. In DAP agreements, the buyer is responsible for paying import duties and any applicable taxes, including clearance and local taxes, once
What Is Delivery? In the financial markets, the term “delivery” refers to the act of transferring a commodity, currency, security, cash or another instrument that is the subject of a contract. It is often used in relation to derivative contracts such as futures and options. In some cases, the buyer of a contract may receive
What Is a Delivery Date? A delivery date is the final date by which the underlying commodity for a futures or forward contract must be delivered for the terms of the contract to be fulfilled. Most futures contracts are used as a hedge to reduce the risk of adverse price movements in a commodity and are
