Accelerated payment of principal in an asset-backed security. This is availed of in order to protect the issuer from the liquidity problems of the debtor. The early payment is also done when the issuer's net profit after deducting fees and costs are below acceptable levels.
Related information about early amortization:
- Early Amortization Definition | Investopedia
Early amortization is an accelerated payment of bond principal in an asset- backed security, usually triggered when there is a sudden increase in delinquencies ...
- Early Amortization Definition & Example | InvestingAnswers
We explain the definition of Early Amortization, provide a clear example of how it works and explain why it's an important concept in business, finance ...
- Early Amortization - Financial Dictionary - The Free Dictionary
Early repayment of an asset-backed security, usually occurring when something goes wrong. Most commonly, if there are more than a certain number of defaults ...
- What is early amortization? definition and meaning
Definition of early amortization: Accelerated payment of principal in an asset- backed security. This is availed of in order to protect the issuer from the liquidity ...
- Securitization - Wikipedia, the free encyclopedia
An early amortization event is the risk of the debt being retired early. On the other hand, bullet or slug structures return the principal to investors in a single ...
- Asset-Backed Securities (ABS)- An Overview; ABS Market and ...
An overview of asset-backed securities, their market and what determines their yield, and what causes early amortization.
- Basel ii USA - Early Amortization
An early amortization event can increase a bank's capital needs if new draws on the revolving credit facilities need to be financed by the bank using on-balance ...
- Market Risks
Most revolving ABS are subject to early-amortization events—also known as payout events or early calls. A variety of developments, such as the following, may ...