easy · Asset-Backed Securities asset-nuances
A Credit Card Master Trust is currently in its 'Revolving Period.'
How are the monthly principal collections from cardholders typically utilized by the trust?
- To purchase new receivables from the originator
- To fund the interest payments for the subordinate tranches
- To pay down the Class A bond principal sequentially
- To build an overcollateralization account to 110% of par
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