Spread account

A typical issue will feature a triple-A rated tranche, a single-A rated tranche, a triple-B rated tranche and a dynamic spread account. The subordination structure for a typical credit card issue is shown in Exhibit 13.8. In this example, the class A noteholders benefit from the subordination of the class B and class C notes, which together provide 12% credit enhancement. The class B noteholders benefit from the subordination of the class C notes, which provide 7% credit enhancement. The class C noteholders benefit from a dynamic spread account. 

The class C noteholders benefit from a dynamic spread account. If 3-month average excess spread falls below a predetermined level, the spread account builds from monthly excess spread until the target level is reached. In order to fully understand the protection afforded by the spread account we need to assess the degree to which the spread account traps excess spread. Exhibit 13.10 shows excess spread trigger levels and trapping levels for a typical credit card issue. 

In the following example, the spread account starts to trap excess spread when the 3-month average excess spread level is 5% or lower. As the excess spread level continues to decrease, the level of spread that is trapped increases to a maximum of 5% of the total transaction size. 

As the spread account traps excess spread over a period of deteriorating collateral performance, a driving factor in the effectiveness of the spread account is the rate at which the excess spread decreases. If the collateral performance deteriorates slowly, the spread trapping mechanism will most likely be able to trap the maximum amount of spread allowed. However, if there is a rapid deterioration in the collateral performance, the spread trapping mechanism may not be able to trap the maximum allowable amount of spread before the excess spread in the transaction turns negative. Exhibit 13.11 shows a scenario in which excess spread deteriorates from an initial level of 9% to zero over a 36-month period. After 12 months, 3-month average excess spread falls to 5% and excess spread is getting trapped. 

In this example, the dynamic spread account builds up to the maximum 5% of the transaction size. The spread account reaches the maximum of 5% in month 33 and then stays at this level. Exhibit 13.12 shows a scenario in which excess spread falls from the initial 9% to zero within 24 months, that is, the same deterioration in excess spread as in the previous example happens over a 2- instead of a 3-year period. 

In this example, the dynamic spread account builds up only to approximately 1.6% of the transaction size, which is well below the target level of 5%. These two examples highlight the importance of the originator s ability to service the receivables pool effectively and, as such, avoid a rapid deterioration in the performance of the collateral. An originator that follows strict credit underwriting procedures and has experienced staff servicing accounts that enter a state of delinquency... 

There are two types of reserve funds cash reserve funds and excess servicing spread accounts. A cash reserve fund is a separate fund into which a portion of the profits from the bonds issuance have been deposited and invested in short-term hank securities. In a default, the cash in the fund is used to compensate investors who have suffered capital losses. A cash reserve fund is often set up in conjunction with another type of credit enhancement, such as a letter of credit. 

The material of interest is dissolved in a volatile solvent, spread on the surface and allowed to evaporate. As the sweep moves across, compressing the surface, the pressure is measured providing t versus the area per molecule, a. Care must be taken to ensure complete evaporation [1] and the film structure may depend on the nature of the spreading solvent [78]. When the trough area is used to calculate a, one must account for the area due to the meniscus [79]. Barnes and Sharp [80] have introduced a remotely operated barrier drive mechanism for cleaning the water surface while maintaining a closed environment. 

Returning to multilayer adsorption, the potential model appears to be fundamentally correct. It accounts for the empirical fact that systems at the same value of / rin P/F ) are in essentially corresponding states, and that the multilayer approaches bulk liquid in properties as P approaches F. However, the specific treatments must be regarded as still somewhat primitive. The various proposed functions for U r) can only be rather approximate. Even the general-appearing Eq. XVn-79 cannot be correct, since it does not allow for structural perturbations that make the film different from bulk liquid. Such perturbations should in general be present and must be present in the case of liquids that do not spread on the adsorbent (Section X-7). The last term of Eq. XVII-80, while reasonable, represents at best a semiempirical attempt to take structural perturbation into account. 

Dew retting iuvolves the action of dew, sun, and fungi on the plants spread thinly on the ground. Dew retting takes 4—6 weeks, but the action is not uniform and it tends to yield a dark-colored fiber. However, it is far less labor iatensive and less expensive than water retting. It is commonly used iu regions of low water supply and accounts for 85% of the Western European crop, especially iu France, and also iu the former Soviet Union. 

The growth in volume of the enzyme business from 1980 to 1990 is estimated to be 5—10% per year. The estimated worldwide enzyme sales per industry are shown in Table 7. The detergent and starch conversion industries are by far the most important, and account for 60% of total enzyme sales. Five principal industries account for around 85% of enzyme sales, whereas the remaining sales are spread over many different industries. 

Taking these methylene groups into account, interpretation of the HH COSY plot leads directly to the HH relationships C even if the protons at Sh = 2.34 and 4.58 do not show the expected cross signals because their intensity is spread over the many multiplet lines of these signals. 

If equilibrium spreading pressure is to be accounted for, it is added to the right hand side of Eq. 5, giving ... 

Ill practice, the air seldom mixes as completely as in theory. The poll no ants spread with the room air, but there may be areas where the concentration is higher than the average for the room. This has to be taken into account in determining the location of the exhaust opening. 

An additional complication in the PIMC simulations arises when Bose or Fermi statistics is included in the formalism. The trace in the partition function allows for paths which may end at a particle index which is different from the starting index. In this way larger, closed paths may build up which eventually spread over the entire system. All such possible paths corresponding to the exchange of indistinguishable particles have to be taken into account in the partition function. For bosons these contributions are summed up for fermions the number of permutations of particle indices involved decides whether the contribution is added (even) or subtracted (odd) in the partition function. 

Although the Langelier index is probably the most frequently quoted measure of a water s corrosivity, it is at best a not very reliable guide. All that the index can do, and all that its author claimed for it is to provide an indication of a water s thermodynamic tendency to precipitate calcium carbonate. It cannot indicate if sufficient material will be deposited to completely cover all exposed metal surfaces consequently a very soft water can have a strongly positive index but still be corrosive. Similarly the index cannot take into account if the precipitate will be in the appropriate physical form, i.e. a semi-amorphous egg-shell like deposit that spreads uniformly over all the exposed surfaces rather than forming isolated crystals at a limited number of nucleation sites. The egg-shell type of deposit has been shown to be associated with the presence of organic material which affects the growth mechanism of the calcium carbonate crystals . Where a substantial and stable deposit is produced on a metal surface, this is an effective anticorrosion barrier and forms the basis of a chemical treatment to protect water pipes . However, the conditions required for such a process are not likely to arise with any natural waters. 

When plastics are used, their behavior in fire must be considered. Ease of ignition, the rate of flame spread and of heat release, smoke release, toxicity of products of combustion, and other factors must be taken into account. Some plastics bum readily, others only with difficulty, and still others do not support their own combustion A plastic s behavior in fire depends upon the nature and scale of the fire as well as the surrounding conditions. Fire is a highly complex, variable phenomenon, and the behavior of plastics in a fire is equally complex and variable (Chapter 5, FIRE). 

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