Hi When an ABS is issued via a SPV, is it usual for the ABS to be in the form of a normal bond issue with regular coupon payments and a final repayment of capital? Or is it usually issued to pay a level payment for a specified time period (where the payment includes both capital and interest)? Does the equity tranche in a multi-tranche ABS issue pay varying "dividends" or does it pay an expected (high) coupon which reduces as more defaults reduce the underlying income stream? Hope someone can make it more clear to me.
