Excess Spread
Remaining net interest payments from the underlying assets of an asset-backed security, after all payables and expenses are covered.
Investopedia Commentary
The excess spread can be deposited into a reserve account in order to enhance the credit of the asset-backed security, or it can be paid out to investors.
Related Links
Bond Basics Tutorial
Advanced Bond Concepts
See also: Asset-Backed Security, Bond, Expense, Note