Replies to post #504634 on Mr Cooper Group Inc (COOP)

[ron_66271]

"Equity Interests" in ABS Trusts

When talking about ABS Trusts, "Equity Interests" is not a share of capital stock ownership

https://www.guggenheiminvestments.com/perspectives/portfolio-strategy/asset-backed-securities-abs

Example;
"Domino’s retains a substantial equity interest in the SPV and is permitted to collect cash flows in excess of required ABS noteholder payments. Domino’s retained equity aligns its interest with that of ABS noteholders; both benefit from a well-performing business. Details below describe how performance triggers within the securitization help protect noteholders by redirecting excess cash flow away from Domino’s and to the ABS."