Mechanics
Clean-up call
Also known as: clean-up call
status: draft
The right to redeem a securitization when the remaining pool balance falls below a set percentage, commonly 10% of the original balance.
What to watch
Model whether exercising the call is economic. A call right helps avoid expensive tail administration, but it can require liquidity at the wrong time.
Referenced in 12 topics
Amortization and repayment mechanics Auto loans and leases asset-classes Collateralized loan obligations (CLOs) structures Container leases asset-classes Credit-linked notes / synthetic securitizations structures Middle market CLOs asset-classes Personal / unsecured consumer loans asset-classes Private placement / bespoke structures structures Sample term sheet (annotated) appendix Student loans (federal and private) asset-classes Term securitization (ABS/MBS) structures Term sheet anatomy documentation