joacogimeno
Member
And another question that I think has not been discussed: the one were a CLO structure was provided, including the width of each tranche, the coupon they each would receive and the defaults that it occurred during the life of the structure. The following options were presented:
The equity tranche looses all its value and the others none
The equity tranche looses all its value and the mezzanine some
The equity tranche looses some value and the mezzaniene looses some value
¿?
Going through the cashflows I got that the equity would be completely wiped out and that the others would not suffer any loss (interest+notional)
The equity tranche looses all its value and the others none
The equity tranche looses all its value and the mezzanine some
The equity tranche looses some value and the mezzaniene looses some value
¿?
Going through the cashflows I got that the equity would be completely wiped out and that the others would not suffer any loss (interest+notional)