medium · Asset-Backed Securities asset-nuances

How does the 'Investor Percentage' of pool collections typically shift once a series enters its amortization phase?

1. It remains fixed at the level it was on the last day of the revolving period
2. It increases to 100% of all pool collections to accelerate the exit
3. It declines proportionally as the invested amount of the series is paid down
4. It shifts from a principal-based to an interest-based calculation

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