A ________ pays out cash flows from a collection of assets in different tranches, with the highestminus−rated tranch paying ou

Question

damaskus [11]

2 years ago

15

A ________ pays out cash flows from a collection of assets in different tranches, with the highestminus−rated tranch paying ou

t first, while lower ones paid out less if there are losses on the underlying assets.

Business

1 answer:

katovenus [111] · Answer 1 · 2022-05-21T10:27:22+03:00

<span>A CDO pays out cash flows from a collection of assets in different tranches, with the highestminus−rated tranch paying out first, while lower ones paid out less if there are losses on the underlying assets.
CDO is collateralized debt obligation.It is a type of ABS (asset-backed securities). CDO's are created in tranches and tranches are number of securities offered for a same transaction.</span>

A​ ________ pays out cash flows from a collection of assets in different​ tranches, with the highestminus−rated tranch paying ou

A ________ pays out cash flows from a collection of assets in different tranches, with the highestminus−rated tranch paying ou