Credit Card Receivables ABS

Business & Management
#1

Credit card receivables, or the sums owed on credit cards, are a form of non-amortizing asset ABS: Rather than being applied to a single amount, they are applied to a revolving line of credit. As a result, they don’t have set payment levels, and new loans and modifications to the pool’s composition can be made at any time. Interest, principal payments, and yearly fees are all part of the cash flows of credit card receivables.