easy · Asset-Backed Securities asset-nuances

In a revolving master trust, what happens during the 'Controlled Accumulation Period'?

1. The trust must sell its entire remaining pool of receivables to a third party in order to raise cash for the bondholders.
2. All interest collections received during this period are instead diverted to the residual holder to boost the originator's overall return.
3. The servicer is permitted to stop collecting monthly payments from cardholders altogether once the underlying deal begins winding down toward maturity.
4. Principal collections are set aside in a trust account for several months to pay off the bonds in a single bullet payment at maturity.

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