Answer the below questions. a. What is the difference between credit tranching and prepayment tranching? b. Why
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a. What is the difference between credit tranching and prepayment tranching?
b. Why would there be both types of tranching in a nonagency deal but only one type of tranching in an agency deal?
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a Credit tranching refers to redistributing credit risk among bond classes in the structure while pr...View the full answer
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