20. The CDX.NA.HY Index (with 100 names) Tranches has an equity (absorbing the first 10% of defaults in the index), a junior mezzanine (absorbing the next 5%), a senior mezzanine (absorbing the next 10%), a junior senior (absorbing the next 10%) and a super senior tranche (absorbing the last 65% of defaults in the index). Assuming a name in the index defaults, with recovery rate 40%

1) Calculate the payout from the protection sellers of the equity tranche

2) Calculate the new detachment for equity tranche

\begin{tabular}{|c|c|c|c|c|} \hlineCDS1 & \multirow{5}{*}{ CDX.NA.HY } & Super Senior & 35100% & \\ \hlineCDS2 & & Junior Senior & 2535% & Detachment point 15% \\ \hline \multirow{3}{*}{CDS1} & & Senior Mezz & 1525% & \\ \hline & & Junior Mexz & 1015% & \\ \hline & & Equity & 0>10% & \\ \hline \end{tabular}