medium · Asset-Backed Securities
An analyst is calculating the 'Excess Spread' for a retail auto ABS. The pool yield is 8.00%, the servicing fee is 1.00%, and the weighted average bond coupon is 4.50%.
If monthly net losses are running at 1.20% (annualized), what is the remaining annual excess spread?
- 1.30%
- 3.50%
- 2.50%
- 0.30%
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