easy · Asset-Backed Securities
What is 'Interchange', and how does it affect a credit card master trust?
- A mechanism for swapping high-interest receivables for low-interest receivables within the pool.
- Fees paid by merchants to the card issuer, which are often included as part of the trust's finance charge collections.
- The process of moving a series from the revolving period to the amortization period.
- The interest rate swap between the trust and an external bank to hedge rate risk.
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