easy · Asset-Backed Securities
What is 'Portfolio Yield' in a credit card master trust?
- The total amount of principal repaid by cardholders divided by the interest they paid.
- The annualized finance charges, fees, and interchange collected by the trust as a percentage of the receivables.
- The net profit of the bank's entire credit card division, including its marketing and office expenses.
- The percentage of cardholders who successfully 'graduate' to a higher-tier card product.
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