medium · Asset-Backed Securities waterfalls
A senior-subordinate Auto ABS transaction features a 'First Priority Principal' payment to the Class A notes.
Under what condition would the 'First Priority Principal' amount be calculated and paid according to standard structural principles?
- Every month as part of routine scheduled amortization
- After all subordinate interest has been paid
- Only if a cumulative net loss trigger level has been breached
- When the Class A note balance exceeds the pool balance
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