The credit quality of the securitized car loan assets would be enhanced if the principal value of securities issued is higher than the principal value of the assets.

Under a revolving structure, prepayment assumptions are not incorporated, which typically results in principal amounts paid to investors on a coupon-by-coupon basis throughout the life of the security.

Under a revolving structure, the bank transfers the car loan assets to the SPV and the SPV can issue multiple securitizations, which are priced and traded based on weighted-average life of the structure as well as on investor demand.