Break costs are called break fees. Break fees are fees that are charged to an investor who cancels their investment in a
securitisation before the end of the term. Break fees are typically used to cover the costs that the
issuer incurs in issuing the securities, such as legal and accounting fees.
Break fees can be a significant cost for investors, so it is important to carefully consider them before investing in a securitisation. Investors should also be aware that break fees may be waived in certain circumstances, such as if the issuer
defaults on the securities.