medium · Asset-Backed Securities
An analyst reviews a credit card master trust with a portfolio yield of 18.5%, a weighted-average bond coupon of 5.2%, and a servicing fee of 2.0%.
If the current annualized charge-off rate is 6.5%, what is the three-month rolling average excess spread if these figures have remained constant?
- 11.3%
- 13.3%
- 4.8%
- 6.8%
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