\n\t\t\t\t
Credit card receivables are the amount due on credit card balances, which is a type of non-amortizing asset ABS. Instead of towards the same set sum, they go to a revolving line of credit. <\/p>
Hence they don’t have fixed payment amounts, but new loans and changes can be added to the composition of the pool. <\/p>
Interest, principal payments, and annual fees are the cash flows of credit card receivables.<\/p>\n
<\/p>\n
Credit card receivables do not have payment of principal and if the principal is paid within the lock-up period, the new loans will be added to the ABS with the principal payment making the pool of credit card receivables remain unchanged. <\/p>
After the lock-up period, the ABS investor receives the principal payment.<\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t