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 overcollateralization and at what amount of losses will senior tranche investors begin to lose money?

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