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Excess Spread

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Dictionary Says

Definition of 'Excess Spread'

Remaining net interest payments from the underlying assets of an asset-backed security, after all payables and expenses are covered.
Investopedia Says

Investopedia explains 'Excess Spread'

The excess spread can be deposited into a reserve account in order to enhance the credit of the asset-backed security, or it can be paid out to investors.

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