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Payment Lag

The number of days between the end of an accrual/observation period and the cash payment date.

Market use

Used in many overnight-rate products.

What it means

The number of days between the end of an accrual/observation period and the cash payment date.

Example

A five-business-day payment lag means cash settles after the underlying accrual period ends.

How to interpret it

This concept should be read together with its market convention, measurement horizon and underlying instrument. BondStats presents it as an analytical reference rather than investment advice; instrument documentation and primary market rules remain authoritative.

BondStats reference content is independently written. Mathematical relationships, abbreviations and market conventions are presented for educational and analytical use.