easy · Asset-Backed Securities waterfalls
Major Bank Credit Card Master Trust Series 2026-A is in its revolving period. The three-month rolling average excess spread drops to -0.15%.
What is the immediate structural consequence?
- Controlled amortization begins, paying down principal in 12 equal monthly installments.
- The trust must promptly buy more receivables to restore the seller's interest.
- The series enters rapid amortization and all principal collections are paid to bondholders.
- The servicer is replaced by the named backup servicer since negative spread trips a servicing trigger.
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