U.S. Floorplan Risk Management
FordREV
Credit Enhancement Levels
•
Upon each receivables purchase, one of three levels of credit enhancement is established based upon the
entire pool's composition and compliance with a Net Loss Test
-
-
Achieved by varying the discount rate for yield supplement overcollateralization
- 2019-REV1 total hard enhancement is consistent with previous 5-year Ford REV transactions
Excess Spread*
7.54%
3.99%
4.64%
Intital Hard Credit
Enhancement**
9.50%
9.50%
9.50%
3.49%
5.25%
Enhancement Scenario
(1)
(2)
(3)
Memo: 2018-B***
Floor CE Composition Tests
Met
Failed
N/A
N/A
Pool Composition Tests
Met
Met
N/A
N/A
Net Losses Test
Met
Met
Failed
N/A
Yield Supplement Discount Rate
8.40%
9.10%
12.10%
7.50%
*
Annual excess spread including Yield Supplement
**
Initial hard credit enhancement (overcollateralization + subordination + reserves) as a % of Adjusted Pool Balance
*** U.S. public retail transaction
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Ford FORD CREDITView entire presentation