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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 $
Subordinated tranche A $
Subordinated tranche B $
If the assets in the pool are worth $ what is the amount of overcollateralization and at what amount of losses will senior tranche investors begin to lose money?
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