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ly amortization is the way for investor to make less severe the effect of declining credit performance or liquidity crisis most rating agencies required asset
Early amortization is the way for investor to make less severe the effect of declining credit performance or liquidity crisis. Most rating agencies required asset backed securities to include early amortization as a condition as rating the debt. Though lower the risk associated with an asset backed securities , early amortization itself bears risk that an investor may not earn all the interest promised over life of the security if an early amortization even occurs.
