Answer the below questions. a. If there is a shortfall in interest paid to the senior tranches

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Answer the below questions.
a. If there is a shortfall in interest paid to the senior tranches of a CDO, how is the shortfall made up?
b. If coverage tests are failed for a CDO, how is the principal received from the collateral used?

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Bond Markets Analysis and Strategies

ISBN: 978-0133796773

9th edition

Authors: Frank J.Fabozzi

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Question Posted: Aug 22, 2015 07:38 AM

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Answer the below questions. a. If there is a shortfall in interest paid to the senior tranches

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a If there is a shortfall in interest paid to the senior tranches principal proceeds are used to mak...View the full answer

Bond Markets Analysis and Strategies

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