1 Given the ABS ABS CDO shown below, what is the minimum loss on the portfolio of underlying assets when a) Senior ABS tranche a 50 has loss of principal b) Equity ABS CDO tranche has a 100 loss of principal c) Mezzanine ABS CDO tranche has a 100 loss of principal d) Senior ABS CDO tranche has a 50 loss of principal e) Senior ABS CDO tranche has a 100 loss of principal f) Why is it likely that the AAA rated tranche of this ABS CDO is more risky than the AAA rated tranche of the ABS g) Why are the risks in ABS CDOs misjudged by the market What did we learn about this in 2007 Please provide step by step work to answer this problem, thank you

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1  Given the ABS   ABS CDO shown below, what is the minimum loss on the portfolio of underlying assets when  a) Senior ABS tranche a 50  has loss of principal  b) Equity ABS CDO tranche has a 100  loss of principal  c) Mezzanine ABS CDO tranche has a 100  loss of principal  d) Senior ABS CDO tranche has a 50  loss of principal  e) Senior ABS CDO tranche has a 100  loss of principal  f) Why is it likely that the AAA rated tranche of this ABS CDO is more risky than the AAA rated tranche of the ABS  g) Why are the risks in ABS CDOs misjudged by the market  What did we learn about this in 2007  Please provide step by step work to answer this problem, thank you

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1. Given the ABS & ABS CDO shown below, what is the minimum loss on the portfolio of underlying assets when: a) Senior ABS tranche

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