Why are there no loan origination date restrictions for credit card and floorplan ABS?
Unlike other TALF-eligible loan categories of ABS, which are backed by a fixed pool of loans, credit card and floorplan ABS are backed by dynamic pools of receivables that constantly change as customers and dealers 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 floorplan ABS largely fund newly originated receivables, consistent with the policy goal of the TALF.
Unlike other TALF-eligible loan categories of ABS, which are backed by a fixed pool of loans, credit card ABS, floorplan ABS, and some auto ABS are backed by dynamic pools of receivables that constantly change as customers and dealers 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 ABS, floorplan ABS, and some auto 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?
