Question: Resecuritization was a badly flawed idea. AAA tranches created from the mezzanine tranches of ABSs are bound to have a higher probability of default than

Resecuritization was a badly flawed idea. AAA tranches created from the mezzanine

tranches of ABSs are bound to have a higher probability of default than the AAA-rated

tranches of ABSs. Discuss this point of view.

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