**ABS**

Lets write all the types of ABS and their characteristics I’ll start credit enhancemenst - internal and external internal -reserve funds, overcollateralization and structures(senior subordinated) external - corporate guarantees, letter of credit and bond insurance

florinpop Wrote: ------------------------------------------------------- > Lets write all the types of ABS and their > characteristics > I’ll start > credit enhancemenst - internal and external > internal -reserve funds, overcollateralization and > structures(senior subordinated) > external - corporate guarantees, letter of credit > and bond insurance Plus Weak link somethingorother

Auto loan securities - use ABS Absolute prepayment speed

Seller - originates the loan issuer/trust - SPV that buy the loan from seller and issues to investors servicer - services the loan

revolving structure - during lockout period, cash flow from principal payment are invested in new loans

ABS Issuer calls: Cleanup; Insurance; and Specific time period calls.

Student loan securities - 3 periods deferment - no interest accrued no payments necessary grace period - interest accrues but no payments necessary loan repayment period - interest &principal payments necessary Prepayment occur in case of default -Govt guarantee

Auto Loan, Student Loans, Manufactured housing loans => Use Z spread MBS, SBA loans, HEL’s => Use OAS Can someone confirm?

correct. use OAS from Monte Carlo

whats SBA?

Small business administration

ah, danke houston