Performance measure: net portfolio yield Definition: gross portfolio yield minus charge offs warning signal: if the weighted average coupon promised to the ABS tranches iIS LESS THAN THE PORFOLIO YIELD, then there is RISK THAT TRANCHES WILL NOT GET PAID OFF as promised. Dont get it… can someone define promised? does the warning signal represent contraction risk or extension risk? From an investors perspective… i know that the higher net portfolio yield will mean thaat it is more likely the tranches will get paid… its just a matter of whether its paid early (contraction risk) or paid later (extension risk).