easy · Asset-Backed Securities waterfalls
Which feature is most commonly found in 'revolving' structures like credit card ABS during their normal operating phase?
- Principal is paid sequentially to the Class A-1 notes each period
- All interest collected each period is swept into a spread reserve account
- The senior bonds are fully retired within just the first six months of the trust's life
- The principal is not distributed to bondholders but used to buy new assets
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