SEASONING

Seasoning is a time period wherein a debt security engaged in public trading. The purpose of seasoning is to determine the possibility of a premium to become a security for the secondary market. The debt security may be classified as ‘unseasoned’ if its track shows that it has been trading for less than 1 year. And by logis, a debt security traded for more than 1 year might be classified as ‘seasoned’ provided that it has a good track record.