Ramp-up period
Asset-Backed Securities glossary · Asset Backed Securities
Definition
The period at the start of a transaction during which the trust acquires its pool of assets.
Ramp-up period in plain English
The ramp-up period is the opening stretch of a deal when the trust (the legal box that holds the loans on investors' behalf) is still busy buying up the loans it promised to hold. Instead of owning its full pool from day one, it starts with cash and gradually 'fills the basket' with actual loans over these first weeks or months. It's like ordering a subscription box that arrives partly empty at first and gets stocked up over time until it's complete. This is the window during which the pre-funding cash gets put to work.
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