Sentence examples for lower tranches from inspiring English sources

In a final twist, some of the lowest tranches from this new instrument were spun into still another product, and once again some of the lower tranches were upgraded.

The banks that provide credit lines to it will incur losses only after lower tranches held by the SIVs and outside investors have been wiped out, which seems unlikely even in current conditions.Joseph Mason, a finance professor at Drexel University, sees bigger problems.

We would allow positions of the top-rated AAA and super-senior (even better than AAA) tranches to be held on our own balance-sheet as the default risk was deemed to be well protected by all the lower tranches, which would have to absorb any prior losses.In May 2005 we held AAA tranches, expecting them to rise in value, and sold non-investment-grade tranches, expecting them to go down.

So there's not much left there in the lower tranches.

Lower tranches carried higher coupon rates to compensate for the increased default risk.

In case of car loans, this can be explained by the fact that the car is used as collateral, but it should only have an impact on lower tranches, not the senior classes of securitization.

The lower, riskier tranches ranged from single A to B and came with higher yields but would be first to absorb any losses.

But as rating agencies have downgraded lower-rated tranches of this pooled debt and raised the possibility of marking down the better-quality stuff it has become clear that these instruments are not all they were cracked up to be.Worse, CDOs are devilishly difficult to price and the secondary market is illiquid.

There simply was no way to mathematically construct a plausible scenario where the lower-rated tranches came out whole.

Some have argued that the CDOs were an essential component of the subprime marketplace, because there was scant investor demand for the lower-rated tranches of mortgage bonds, but those same tranches, repackaged into higher-rated CDOs, attracted buyers.

Still, the business intent behind each of these deals was that the lower-rated tranches, those rated BBB and BBB-, would get wiped out before the higher-rated tranches, representing 95% of the deal, lost a single dollar.