Another term for the first-loss tranche in a securitization, also called equity tranche and junior tranche. – The extent to which this tranche can actually absorb a payment default first depends entirely on its thickness (the share of this tranche in relation to the pool as a whole), which is very often overlooked (and by whom!). – See tranche dikke, special purpose vehicle.

Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express consent!
University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
E-mail address: info@ekrah.com
https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk
https://www.jung-stilling-gesellschaft.de/merk/
https://www.gerhardmerk.de/

Kommentare geschlossen.