What is "paug"

PAUG ("Pay As You Go") refers to application of credit derivatives technology to structured finance products. It works very similar to a CDS with the reference entity being a structured finance products such as ABS, CMBS, RMBS etc. The trigger events in PAUG can be classified mainly as “Credit Events” and “Floating Rate Payment Events”. PAUG is a settlement methodology for CDS on ABS reference Entities.