Why are there no loan origination date restrictions for credit card and dealer floorplan ABS?
Unlike auto and student loan ABS, which are backed by a fixed pool of loans, credit card and dealer floorplan ABS are backed by dynamic pools of receivables that constantly change as customers and vehicle dealerships draw on and repay their credit lines. The pools include both seasoned and recently originated receivables. Due to the quick turnover and revolving nature of the underlying pools, the refinancing of existing credit card and dealer floorplan ABS largely fund newly originated receivables, consistent with the policy goal of the TALF.
Related Questions
- Why are there no loan origination date restrictions for credit card ABS, floorplan ABS, premium finance ABS, and auto ABS issued to refinance a maturing ABS issued out of a master trust?
- Why are there no loan origination date restrictions for credit card ABS, floorplan ABS, premium finance ABS, and auto ABS issued by a master trust?
- Why are there no loan origination date restrictions for credit card and dealer floorplan ABS?
