medium · Asset-Backed Securities asset-nuances
In a revolving credit card master trust, what is 'Portfolio Yield'?
- The weighted average coupon rate that the trust pays to its Class A, B, and C bondholders, net of subordination and credit enhancement costs.
- The annualized sum of finance charges, late fees, and interchange collected by the trust, expressed as a percentage of the receivables balance.
- The total dollar amount of principal repaid each month by cardholders divided by the total credit limit across all of the accounts.
- The rate at which newly originated receivables are added to the trust each month, expressed as a percentage of the trust's original invested amount.
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