Suppose that the principal assigned to the senior, mezzanine, and equity tranches is 70%, 20%, and 10% for both the ABS and the ABS CDO in Figure 8.3. What difference does this make to Table 8.1?

Table 8.1 Estimated losses to tranches of ABS CDO in Figure 8.3. \begin{tabular}{ccccc} Lossesonunderlyingassets & LossestomezzaninetrancheofABS & LossestoequitytrancheofABSCDO & LossestomezzaninetrancheofABSCDO & LossestoseniortrancheofABSCDO \\ \hline 10% & 33.3% & 100.0% & 93.3% & 0.0% \\ 13% & 53.3% & 100.0% & 100.0% & 28.2% \\ 17% & 80.0% & 100.0% & 100.0% & 69.2% \\ 20% & 100.0% & 100.0% & 100.0% & 100.0% \\ \hline \end{tabular} igure 8.3 Creation of ABSs and an ABS CDO from portfolios of assets (simplified). Table 8.1 Estimated losses to tranches of ABS CDO in Figure 8.3. \begin{tabular}{ccccc} Lossesonunderlyingassets & LossestomezzaninetrancheofABS & LossestoequitytrancheofABSCDO & LossestomezzaninetrancheofABSCDO & LossestoseniortrancheofABSCDO \\ \hline 10% & 33.3% & 100.0% & 93.3% & 0.0% \\ 13% & 53.3% & 100.0% & 100.0% & 28.2% \\ 17% & 80.0% & 100.0% & 100.0% & 69.2% \\ 20% & 100.0% & 100.0% & 100.0% & 100.0% \\ \hline \end{tabular} igure 8.3 Creation of ABSs and an ABS CDO from portfolios of assets (simplified)