Question
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 81,000 and B has an outstanding balance of 47,000. What is the principal payment towards tranche B in this month?
| month | beginning balance | scheduled principal payment | Prepayment | Interest to MBS investors |
| 30 | $642,000 | 15,000 | 16,000 | 41,000 |
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The Dark Side Of Valuation
Authors: Aswath Damodaran
3rd Edition
0134854101, 9780134854106
