What Is the Constant Default Rate (CDR)? The constant default rate (CDR) is the percentage of mortgages within a pool of loans in which the mortgagors (borrowers) have fallen more than 90 days behind in making payments to their lenders. These pools of individual outstanding mortgages are created by financial institutions that combine various loans
What is a Constant Dollar? A constant dollar is an adjusted value of currency used to compare dollar values from one period to another. Due to inflation, the purchasing power of the dollar changes over time, so in order to compare dollar values from one year to another, they need to be converted from nominal
What Is Constant Maturity? Constant maturity is an adjustment for equivalent maturity, used by the Federal Reserve Board to compute an index based on the average yield of various Treasury securities maturing at different periods. Constant maturity yields are used as a reference for pricing various kinds of debt or fixed-income securities. The most common
What Is a Construction Bond? A construction bond is a type of surety bond used by investors in construction projects. Construction bonds are a type of surety bond that protects against disruptions or financial loss due to a contractor’s failure to complete a project or failure to meet contract specifications. These bonds ensure a construction
What Is Construction Interest Expense? Construction interest expense is an interest that accumulates on a construction loan used to construct a building or other long-lived business asset. Typically, interest paid on a loan is immediately expensed and is tax deductible but that isn’t always the case. For example, construction interest expense that is incurred during
What Is a Construction Lien? A construction lien is a claim made against a property by a contractor or subcontractor who has not been paid for work done on that property. Construction liens are designed to protect professionals from the risk of not being paid for services rendered. A construction lien makes it difficult or
What Is a Construction Loan? A construction loan (also known as a “self-build loan”) is a short-term loan used to finance the building of a home or another real estate project. The builder or home buyer takes out a construction loan to cover the costs of the project before obtaining long-term funding. Because they are considered
What Is a Construction Loan Note? A construction loan note (CLN) is a debt obligation used for the funding of construction projects such as housing developments. In most cases, the note issuers repay the note obligation by issuing a longer-term bond. The proceeds from the bond pay back the debts on the note. Understanding a Construction Loan
What Is a Construction Mortgage? A construction mortgage is a type of loan that finances the building of a home specifically. The money loaned is often advanced incrementally during the building phase as the work progresses. Typically, the mortgage only requires payment of interest during the construction period. When the building phase is over, the
Seed potatoes Potatoes are a cool-weather crop, but the leafy tops can’t tolerate more than a light frost. Plant potatoes so they come to harvest when the weather is cool but not cold. In cold-winter climates, plant seed potatoes in the garden in spring as soon as the soil can be worked—usually about 3 weeks
