________ is basically the interest from the collateral that is not being used to satisfy the liabilities (i.e., the interest payments to the tranches in the structure) and the fees (such as mortgage servicing and administrative fees).

Question

Quizplus · Accepted Answer

Excess spread refers to the difference between the interest earned on the collateral and the interest paid to the tranches in the structure, as well as any fees associated with the structure. Overcollateralization refers to the amount of collateral that exceeds the amount of the liabilities, while monoline insurance and senior-subordinate structure are different components of securitization.

________ Is Basically the Interest from the Collateral That Is