The excess spread can be deposited into a reserve account in order to enhance the credit of the asset-backed security, or it can be paid out to investors.
Investment dictionary. Academic. 2012.
Excess Spread — Credit Enhancement ist ein wesentlicher Bestandteil einer Verbriefungstransaktion und wird meist von Ratingagenturen ermittelt, um das Rating eines forderungsbesicherten Wertpapiers zu ermitteln. Es gibt unterschiedliche Arten von Credit… … Deutsch Wikipedia
excess spread — A term used in asset backed securities to describe the amount by which the yield from the loan collateral, net of charge offs, exceeds the sum of the servicing fee and the interest paid to holders of the security. American Banker Glossary … Financial and business terms
spread-ea|gle — spread eagle, 1. a representation of an eagle with outspread wings, used as an emblem of the United States and certain other countries. 2. a boastful, self assertive person, especially an American with an excess of national or regional pride. 3.… … Useful english dictionary
Frequency-hopping spread spectrum — (FHSS) is a method of transmitting radio signals by rapidly switching a carrier among many frequency channels, using a pseudorandom sequence known to both transmitter and receiver. A spread spectrum transmission offers three main advantages over… … Wikipedia
bearing spread — A purposely manufactured small extra distance across the parting faces of the bearing half, in excess of the actual diameter of the housing bore. Thus the diameter is slightly greater than the housing into which a shell bearing is being placed.… … Dictionary of automotive terms
Collateralized mortgage obligation — Financial markets Public market Exchange Securities Bond market Fixed income Corporate bond Government bond Municipal bond … Wikipedia
Securitization — is a structured finance process, which involves pooling and repackaging of cash flow producing financial assets into securities that are then sold to investors. The name securitization is derived from the fact that the form of financial… … Wikipedia
Credit Enhancement — ist ein wesentlicher Bestandteil einer Verbriefungstransaktion und wird meist von Ratingagenturen ermittelt, um das Rating eines forderungsbesicherten Wertpapiers zu ermitteln. Es gibt unterschiedliche Arten von Credit Enhancements. Generell wird … Deutsch Wikipedia
Credit enhancement — Securities Securities Bond Stock Investment fund Derivative Structured finance Agency security … Wikipedia
Cash Collateral Account — Credit Enhancement ist ein wesentlicher Bestandteil einer Verbriefungstransaktion und wird meist von Ratingagenturen ermittelt, um das Rating eines forderungsbesicherten Wertpapiers zu ermitteln. Es gibt unterschiedliche Arten von Credit… … Deutsch Wikipedia
