Question
In credit card receivable ABS, what changes when the amortization period begins?
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Answer
Principal is returned to investors instead of funding new receivables.
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Question
What cash flows typically support a credit card receivable ABS?
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Answer
Finance charges, annual fees, and principal after lockout.
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Question
How does subordination provide credit enhancement in an ABS structure?
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Answer
Junior tranches absorb first losses, protecting senior tranches.
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Question
Why can senior ABS tranches achieve higher credit ratings than junior tranches?
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Answer
They take losses only after subordinated tranches are exhausted.
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