hard · Asset-Backed Securities asset-nuances
If a master trust is 'cross-collateralized,' what does this imply for the various series issued?
- The credit enhancement of one series can be used to cover interest shortfalls in another series
- If one series defaults, all other series are automatically triggered into rapid amortization
- All series are backed by a shared, single pool of receivables
- Investors in Series A can seize the principal collections of Series B during the revolving period
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