Credit card receivable asset-backed securities differ from auto loan ABS in the following way: A. Credit card

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Credit card receivable asset-backed securities differ from auto loan ABS in the following way:

A. Credit card loans are recourse loans, whereas auto loans are non-recourse loans.

B. The collateral for credit card receivable-backed securities is a pool of non-amortizing loans, whereas the collateral for auto loan ABS is a pool of amortizing loans.

C. Credit card receivable-backed securities have regular principal repayments, whereas auto loan ABS include a lockout period during which the cash proceeds from principal repayments are reinvested in additional loan receivables.

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Fixed Income Analysis

ISBN: 9781119850540

5th Edition

Authors: Barbara S. Petitt

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