Question: Please explain WHERE THESE NUMBERS COME FROM :) Q. Assets with a principal of $10,000,000 were packaged into 3 tranches: Senior (75%), Mezzanine (20%) &
Please explain WHERE THESE NUMBERS COME FROM :)
Q. Assets with a principal of $10,000,000 were packaged into 3 tranches: Senior (75%), Mezzanine (20%) & Equity (5%). Mezzanine tranche was then repackaged into ABS CDO Senior (60%), Mezzanine (30%) & Equity (10%). Please fill-in the Table of Estimated Losses below: Losses on Losses on SubprimeMezzanine portfoliosTranche of ABS Losses on Equity Losses on Tranche of ABS Mezzanine Tranche Tranche of ABS CDO $200,000 100%-$200,000 100% = $200,000 Losses on Senior of ABS CDO $600,000 CDO $2,000,000 10%-$200,000 30%= $600,000 50%-$1,000,000 $1,200,000 | 0%-$0 790 11% 15% 19% 66.67% $400,000 100%-$600,000 | 100%-$600,000 0% = $0 100%-$200,000 16.67%-$200,000 | 70%-$1,400,000 | 100%-$200,000 | 50%-$600,000 Q. Assets with a principal of $10,000,000 were packaged into 3 tranches: Senior (75%), Mezzanine (20%) & Equity (5%). Mezzanine tranche was then repackaged into ABS CDO Senior (60%), Mezzanine (30%) & Equity (10%). Please fill-in the Table of Estimated Losses below: Losses on Losses on SubprimeMezzanine portfoliosTranche of ABS Losses on Equity Losses on Tranche of ABS Mezzanine Tranche Tranche of ABS CDO $200,000 100%-$200,000 100% = $200,000 Losses on Senior of ABS CDO $600,000 CDO $2,000,000 10%-$200,000 30%= $600,000 50%-$1,000,000 $1,200,000 | 0%-$0 790 11% 15% 19% 66.67% $400,000 100%-$600,000 | 100%-$600,000 0% = $0 100%-$200,000 16.67%-$200,000 | 70%-$1,400,000 | 100%-$200,000 | 50%-$600,000
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