nixie24

this is true but there are certain conditions where principal can be retired early. reading 56 talks about call provisions such as a specific date reached, collateral value falling, and insurer calls. it talks about early amortization triggers (the most common of which is when the 3 month average excess spread earned on receviables declines to zero). this same page even says “even though there is no principal repayment schedule for credit card borrowers, an early amortization trigger creates the potential for contraction risk in a receviables-backed structure.”
based on that, i think the question is at best poorly worded, if not wrong. at the very least, give me some language that says “most often” or “under no triggers” or something like that.