Net Excess Spread in a Securitization

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Securitization, Tranches, Credit, Risk, Net, Excess, Spread

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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).

  1. By: bionicturtle
  2. Categories How To
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  4. Added :04-Oct-08
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