When unamortizing assets are securitized, the composition of the collateral is fixed over the life of the structure, all principal received by the trust is paid out to the bond classes and the securitization is said to be a self-liquidating structure.

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When unamortizing assets are securitized, the composition of the collateral can change over the life of the structure due to the revolving period where new assets can be added. The principal received may be used to purchase new collateral rather than being paid out, making it not strictly a self-liquidating structure until it reaches the amortization phase.

When Unamortizing Assets Are Securitized, the Composition of the Collateral