easy · Asset-Backed Securities abs-core
A servicer in an Auto ABS is approaching the 'Cleanup Call' threshold. The current pool factor is 0.09.
If the servicer exercises the call, what price must they pay for the outstanding bonds?
- Par minus the total cumulative losses of the pool to date.
- 90% of the original par value, matching the pool factor.
- Par plus any accrued interest.
- The current market value of the bonds as determined by a third-party appraisal.
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