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It requires bondholders – including some private investors who own certain tranches of bonds – to take heavy losses.
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Other tranches of student loans were sold in the late 1990s.
Tranches of the CDX.NA.IG.9 are not executed through a clearinghouse.
In the subsample of dual holder loans that have multiple tranches of the same type, the tranches with dual holder participation have higher spreads than the tranches without dual holder participation.
However, these arguments predict that returns to all tranches of a loan will be higher, and do not explain differences in returns between tranches of the same loan.
The way securitizations work is that some tranches of securities take the first losses, while others are secure until the lower-ranking tranches are wiped out.
Great, complex ideas, tranches of time, whole careers, become reduced to a single snapshot".
Some derivatives analysts think JPMorgan may be exposed to "tranches" of the CDX.NA.IG.9 index.
The cost of insurance against default for the riskiest tranches of subprime debt has soared.
The borrowing will be in two tranches of €20 billion, one this year and the other next.
I do not expect any further tranches of Libyan troops to come to Bassingbourn".
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com