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Below is a cash flow projection on a sequential-pay CMO, which has four tranches, A through D. Assume the four tranches get paid in the
Below is a cash flow projection on a sequential-pay CMO, which has four tranches, A through D. Assume the four tranches get paid in the order of A->B->C->D. In this month tranche A has an outstanding balance of 86,000 and B has an outstanding balance of 31,000. What is the principal payment towards tranche B in this month?
month | beginning balance | scheduled principal payment | Prepayment | Interest to MBS investors |
20 | $631,000 | 30,000 | 13,000 | 46,000 |
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