Pay as you go (credit derivatives)

PAUG ("Pay As You Go") refers to application of credit derivatives technology to structured finance products. It works similarly to a credit default swap (CDS) with the reference entity being a structured finance product such as ABS, commercial mortgage-backed security (CMBS), residential mortgage-backed security (RMBS), etc.

Source: Wikipedia — Pay as you go (credit derivatives) (CC BY-SA 4.0)