A reaction that is triggered upon occurrence of a predefined event such as when loans/ liabilities exhibit a high percentage of cumulative losses and serious delinquencies. It aims to prevent the credit support from stepping down (deal step-down provisions) based on the peformance of the collateral. Collateral performance triggers include minimum excess spread, asset deficiency coverage, minimum yield and maximum delinquency levels.

Performance triggers come in the form of a test applied in a specific frequency.