Describe static pool analysis what is it, and why is it used As an ABS investor you are comparing three deals, identical in all respects save their credit enhancement One contains a pre funded $5 Million Cash Collateral Account The second traps excess spread in a reserve account until the balance reaches $5 Million, and then releases any further excess spread back to the issuer The third uses $5MM of over collateralization All other things equal, which, if any, of the three alternatives would you find most attractive, and why Which, if any, would you find least attractive, and why

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Question: Describe static pool analysis what is it, and why is it used? As an ABS investor you are comparing three deals, identical in all respects

Describe static pool analysis what is it, and why is it used?

As an ABS investor you are comparing three deals, identical in all respects save their credit enhancement:
1. One contains a pre-funded $5 Million Cash Collateral Account.
2. The second traps excess spread in a reserve account until the balance reaches $5 Million, and then releases any further excess spread back to the issuer.
3. The third uses $5MM of over-collateralization.

All other things equal, which, if any, of the three alternatives would you find most attractive, and why? Which, if any, would you find least attractive, and why?

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