Credit Tranching

Some articles on credit tranching, credit:

Collateralized Mortgage Obligation - Credit Protection - Credit Tranching
... The most common form of credit protection is called credit tranching ... In the simplest case, credit tranching means that any credit losses will be absorbed by the most junior class of bondholders until the principal value of their ... If this occurs, the next class of bonds absorb credit losses, and so forth, until finally the senior bonds begin to experience losses ...

Famous quotes containing the word credit:

    If you want to be on good terms with everyone in this world, sell goods on credit and never ask for payment.
    Chinese proverb.