Why is there no loan origination date restriction for credit card ABS?
Unlike auto and student loan ABS, which are backed by a fixed pool of loans, credit card ABS are backed by a dynamic pool of receivables that changes as customers draw on and repay their credit lines. The pools include both seasoned and recently originated receivables. Due to the revolving nature of the underlying pool, refinancings of existing ABS largely fund newly originated receivables, consistent with the purpose of the TALF.
