Why should I choose AnalystNotes?
AnalystNotes specializes in helping candidates pass. Period.
Basic Question 8 of 10
Suppose that the structure for an asset-backed security is as follows:
Subordinated bond class 1: $100 million
Subordinated bond class 2: $50 million
B. $20 million
C. $35 million
Senior bond class: $200 million
Subordinated bond class 1: $100 million
Subordinated bond class 2: $50 million
The subordinated bond class 2 is the first loss piece. If losses due to defaults over the life of the structure total $35 million, what is the amount of the loss for the senior bond class?
A. 0
B. $20 million
C. $35 million
User Contributed Comments 0
You need to log in first to add your comment.
Thanks again for your wonderful site ... it definitely made the difference.
Craig Baugh
Learning Outcome Statements
describe securitization, including the parties and the roles they play
CFA® 2025 Level I Curriculum, Volume 4, Module 17.