Welcome to AbsBox Discussions!

[yellowbean]

👋 Welcome!

We’re using Discussions as a place to connect with other members of our community. We hope that you:

• Ask questions when you are using absbox
• Enhancement , Bug reporting, or deal modelling request and deal sample request.

To get started, comment below with an introduction of yourself and tell us about what you do with this community.

[quantum-ml-geek]

Can you recommend any good books that goes over the various parts of the ABS? Specifically Triggers. Outstanding repository!

[yellowbean]

from Fabozzi is always a good start overall.
Triggers is a credit enhance mechanism which varies deal by deal, thus no book covers in detail, I would recommend reading prospectus of deal or offering circular / rating reports .

[quantum-ml-geek]

Thanks for the reply. I have a good chunk of the Fabozzi books as well as several other Fixed Income books. None of them really mentions anything about Triggers. I guess going to the prospectus is always an option.

[yellowbean]

this is a abstraction of Trigger ( opinionated based )
https://absbox-doc.readthedocs.io/en/latest/modeling.html#trigger

its about when bad things happed, then the deal cashflow distribution would be changed to favor of senior bond holder.

bad things could be:

• deteriorated pool performance ( pool default rate/ delinquency rate/ loss rate breach a threshold or breach a time series based threshold
• a servicer go bankruptcy
• a bond rating went down
• or issuer has a lower rating
• a bond is outstanding too long without being paid off
• a deal last too long without clean up call or paid off totally