medium · Asset-Backed Securities
A 'Rapid Amortization' or 'Early Amortization' event in a Credit Card Master Trust is most commonly triggered by:
- A clean-up call being exercised by the servicer.
- The three-month average excess spread falling below zero.
- The originator's corporate credit rating being upgraded to investment grade.
- The Monthly Payment Rate (MPR) increasing beyond 30%.
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