easy · Asset-Backed Securities asset-nuances
An investor is analyzing the 'Seller's Interest' in a $20 billion credit card master trust.
If the total invested amount of all series is $12 billion and the receivables pool balance is $20 billion, what represents the Seller's Interest?
- $12 billion, representing the amount the seller originally originated.
- $32 billion, representing the sum of the pool and the bonds.
- $20 billion, which is the total face value of the designated cardholder accounts.
- $8 billion, which acts as a buffer and absorbs fluctuations in the pool balance.
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