Weighted Average Loan Age - WALA

See: WACC.

You're a bank, lending money to first time home buyers. You've been doing it for three decades, and some years are better than others. Most of the loans you make are 30-year fixed. But some are 15ers. Others are weird hybrids. And still others have forced paydowns every five years or so.

You want to know the average age of those loans as you begin to recount the story of your life. Had you made the same type of loan and the same amount or volume and number of loans each year over your 30-year career, then the WALA would be 15 years. But here, your skew has been more to the present, as the world gets bigger and you learn your average loan age is just 11.7 years...so you have leaned much more to the present than the past when it comes to the volume of loans you are writing.

Liviin' in the present, not on a prayer.