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Consider the following asset backed security structure: Senior Tranche: $ 1 5 0 , 0 0 0 , 0 0 0 . Subordinated Tranche A:

Consider the following asset backed security structure: Senior Tranche: $

150, 000, 000 .

Subordinated Tranche A: $

60, 000, 000 .

Subordinated Tranche B: $

20, 000, 000 .

If the assets in the pool are worth $

250, 000, 000,

What is the amount of over collateralization and what amount of losses will senior investors begin to lose money?

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