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tranching

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › tranching

  • This topic has 3 replies, 2 voices, and was last updated 7 years ago by AvatarJohn Moffat.
Viewing 4 posts - 1 through 4 (of 4 total)
  • Author
    Posts
  • March 8, 2019 at 3:12 am #508470
    Avatarayeshatabani
    Member
    • Topics: 98
    • Replies: 95
    • ☆☆

    Dear Sir,
    when we have used our lending in order to secure a collateralised debt obligation.If our customers, to whom we lent the money, default on the interest payments, who stands to suffer? It will be the investors in each of the tranches, right? I.e we received 0 interest on our lending, therefore in return investors in the tranches will suffer all the loss and get nothing as a result?

    March 8, 2019 at 8:35 am #508506
    AvatarJohn Moffat
    Keymaster
    • Topics: 57
    • Replies: 54839
    • ☆☆☆☆☆

    That is correct 🙂

    March 8, 2019 at 2:49 pm #508579
    Avatarayeshatabani
    Member
    • Topics: 98
    • Replies: 95
    • ☆☆

    thankyou!!

    March 8, 2019 at 7:17 pm #508658
    AvatarJohn Moffat
    Keymaster
    • Topics: 57
    • Replies: 54839
    • ☆☆☆☆☆

    You are welcome 🙂

  • Author
    Posts
Viewing 4 posts - 1 through 4 (of 4 total)
  • The topic ‘tranching’ is closed to new replies.

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