help - a fixed asset question on CFA book

CFA Level I Fixed Income
#1

Here is a question on Book 5 Fixed Income, Pg 399

  1. which of the following is least likely a type of collateral for asset-backed securities?

A. Credit card

B. Home equity

C Negotiable CDs

The answer is C and I agree that negotiable is not a type of collateral for asset-backet securities. But - what about A “credit card”? I cannot think about any situation that credit card is a collateral for asset-backed securities. Please help.

#2

Credit card receivables are, in fact, common collateral for ABSs.

#3

thank you!

#4

My pleasure.