"Fixed Income":Amortizing collateral

C is correct. The collateral in a securitization is the pool of securitized assets from which cash flows will be generated. The seller of the collateral is the depositor, also referred to as the originator.

A is incorrect because the trustee is typically a financial institution that safeguards the assets, hold funds for bondholders until they are paid, and provides periodic information to the bondholders.

B is incorrect because the special purpose vehicle (SPV) is the issuer in the securitization.

B is correct. A credit card receivable ABS is an example of an ABS with a non-amortizing collateral.

A is incorrect because a credit card receivable ABS may require early amortization of the principal if certain events occur. Such an early amortization provision would safeguard the credit quality of the issue.

C is incorrect because a credit card receivable ABS would typically have a lockout period during which the cash flow that is paid out to security holders is based only on finance charges collected and fees.