Question: When the collateral manager fails pre-specified risk tests, a CDO is: A. Deleveraged by reducing the senior bond class. B. Restructured to reduce its most

When the collateral manager fails pre-specified risk tests, a CDO is:

A. Deleveraged by reducing the senior bond class.

B. Restructured to reduce its most expensive funding source.

C. Liquidated by paying off the bond classes in order of seniority.

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