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Published 16 months ago
The net excess spread is a type of internal credit enhancement in a securitization. In this simple structure, $100 million in loan assets are securitized by way of two bond class issuances (senior and subordinated debt). The excess spread can be... more
The net excess spread is a type of internal credit enhancement in a securitization. In this simple structure, $100 million in loan assets are securitized by way of two bond class issuances (senior and subordinated debt). The excess spread can be diverted on a post or pre-loss basis (pre-loss: deposited into cash collateral account). less
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