Master trust
Asset-Backed Securities glossary · Asset Specific Nuances
Definition
A structure allowing multiple issuances of bonds backed by a shared pool of revolving receivables.
Master trust in plain English
A master trust is a reusable container for selling bonds. Instead of building a brand-new legal structure every single time a company wants to raise money, it sets up ONE big trust holding a shared pool of loans that constantly turns over — like credit-card balances that get paid down and re-borrowed ("revolving receivables"). Then it can issue new batches of bonds again and again, all backed by that same living pool. It's like a food truck that keeps its stocked kitchen and just serves new orders, rather than building a new kitchen for every customer.
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