Question
What cash flows typically support a credit card receivable ABS?
Tap to flip
Answer
Finance charges, annual fees, and principal after lockout.
Tap to flip back
Question
Why does auto loan ABS return principal to investors earlier than credit card ABS?
Tap to flip
Answer
Auto loans make scheduled principal payments; credit card principal is re-lent during the revolving period.
Tap to flip back
Question
In credit card receivable ABS, what happens during the lockout or revolving period?
Tap to flip
Answer
Principal collections buy new receivables, keeping the pool size roughly constant.
Tap to flip back
Question
In credit card receivable ABS, what changes when the amortization period begins?
Tap to flip
Answer
Principal is returned to investors instead of funding new receivables.
Tap to flip back