of 28 nsure ABS Assets Senior tranche (AAA) Mezzanine tranche (BBB) Equity tranche (unrated) ABS CDO Senior tranche (AAA) Mezzanine tranche (BBB) Equity tranche (unrated) Suppose that in the above diagram, the percentage of assets going to the Senior tranche of the ABS is 80%. The Mezzanine tranche receives 18%, and the equity tranche receives the rest. In the ABS CDO, these percentages are respectively 69%, 27% and the equity tranche receives the rest. What minimum percentage of loss in the assets would start creating a loss in the senior tranche of the ABS CDO? Express 5% as "5". Keep two decimals in your answer. Answer: