easy · Asset-Backed Securities asset-nuances
A credit card issuer wants to protect the excess spread of its master trust during a period of declining cardholder APRs.
Which structural mechanism allows the issuer to reclassify a portion of principal collections as finance charge collections to prevent an early amortization trigger?
- The 'Revolving Credit Enhancement (RCE)'.
- The 'Interchange Cap'.
- The 'Discount Option'.
- The 'Yield Maintenance Buffer'.
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