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How does credit analysis differ for ABS issuers? This answer can be brief since we have...

How does credit analysis differ for ABS issuers? This answer can be brief since we have not discussed securitization in detail.

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In case of Asset Backed Securities (ABS) , while doing credit analysis we use Probability of Loss in place of Probability of Default because in case of asset backed securities (ABS) when an interest payment is not made they do not default. Also there is different future cash flow structure (waterfall structure) in ABS due to which its credit analysis differs.

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