Question: Consider the following asset backed security structure: Senior Tranche: $ 1 5 0 , 0 0 0 , 0 0 0 . Subordinated Tranche A:

Consider the following asset backed security structure: Senior Tranche: $150,000,000. Subordinated Tranche A: $60,000,000. Subordinated Tranche B: $20,000,000. If the assets in the pool are worth $250,000,000, What is the amount of over collateralization and what amount of losses will senior investors begin to lose money?
Consider the following asset backed security structure: Senior Tranche: $150,000,000. Subordinated

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