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

Which statements are true about an ABS CDO created from the mezzanine tranche of an ABS?
Check all that apply:
Investors in the ABS CDO equity tranche are promised higher returns than investors who buy into the ABS CDO mezzanine tranche.
ABS CDOs are created to create more AAA-rates tranches.
The senior tranche of the ABS 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.

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