Sentence examples for equity tranche from inspiring English sources

Typically, the repayment risk on a pool of 50-100 loans is sliced into tranches, with the lowest tranche (called the equity tranche) bearing any initial losses.

And according to Messrs Eisinger and Bernstein, Magnetar was also systematically intervening with CDO managers, who selected the mortgage-backed securities that were bundled into the tranches, and pressuring them to include higher-risk securities in the equity tranche.

Investors could still be found to buy the supposedly less-risky senior and mezzanine tranches, but the bottom tranche containing the riskiest loans, known as the equity tranche, was becoming unmarketable.

Without a buyer for the equity tranche, it was impossible to put together the CDO deal.

The lowest, equity tranche takes the first loss if any companies in the pool default.

It takes only a couple of defaults in a pool of 100 companies to destroy the equity tranche.

An investment bank, for example, funds the pool by issuing different tiers of securities ranging in safety from a very junior, equity-like tranche (first to take a hit if the companies don't pay back their debt) up to a safe, senior tranche (last to take a hit).

MR. HAYES had been sold the riskiest piece of the loan pool, known as the equity or E tranche.

The riskiest tranche, known as equity, earns the highest return but takes the first hit from any defaults in the underlying portfolio.

UKAR also announced that JC Flowers, the American private equity firm, had bought a separate £450m tranche of Northern Rock loans, where customers are not in arrears, in a deal reportedly valued at £300m.

He wants to rationalise the European branch network, something Crédit Lyonnais's executives have had little time to do while they have been fighting to keep the bank afloat; and he reportedly plans to dispose of a first tranche of the bank's equity investments, worth some FFr20 billion, within the next two years.