1. You are an investor in the Class A or Class B tranche. All you know about...
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1. You are an investor in the Class A or Class B tranche. All you know about the underlying risk/return characteristics of the pool is that the WAC is the risk free rate + 4%. What is your optimal class size and class interest rate, given what you know.
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Related Book For
Elements Of Structured Finance
ISBN: 9780195179989
1st Edition
Authors: Ann Rutledge, Sylvain Raynes
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