Question: Which statements are true about an ABS CDO created from the mezzanine tranche of an ABS? Check all that apply: ABS CDOs are created to

Which statements are true about an ABS CDO created from the mezzanine tranche of an ABS? Check all that apply: ABS CDOs are created to create more AAA-rates tranches. The senior tranche of the ABC CDO is less risky than the senior tranche of the ABS. If the underlying assets lose 10% of their value, investors in the ABS CDO mezzanine tranche can lose at most 10% of their investment. Investors in the ABS CDO equity tranche are promised higher returns than investors who buy into the ABS CDO mezzanine tranche
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