ABS securization process

--the larget sectors of ABS market in the U.S. are securities backed by credit card receivables, auto loans, home equity loans. --example --some home theaters are purchased using installment sales contracts, instead of cash. the credit department of manufacturers (QHT) will make the decision. --installment sales contract is a loan to the buyer of the home theater who agress to pay over a specified period of time --if QHT extend the loan to a customer, QHT is originator. --QHT will set up a legal entity refered to as a SPV --In the prospectus of ABS loans, SPV is refered as issuer and QHT is named as seller --the proprity and amount of payments is commonly referred to as the waterfall --trustee or trustee agent is the entiy that safeguards the assets, receiving the payments, provides periodic information