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Only when these have been paid will the more junior tranches get their share.
Senior ones collected relatively low interest rates, but they were protected from losses because more junior tranches would have to be wiped out before losses affected them.
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Many banks got rid of the riskier and more junior CDO tranches, because their own risk-management systems designated them as too dangerous.
The three junior tranches would all have to be erased before the senior tranche's insurer loses money.
Losses will be magnified for investors in the junior tranches.
The losses from defaults first go to junior tranches.
Those were relatively junior tranches, however, and the top ones have yet to be hit.
And if defaults occur, the junior tranches take the first hit.This tailoring can turn coarse corporate cloth into investment-grade haute couture.
More junior filmmaking here.
Our more junior colleagues are really suffering.
I applied for it along with a more junior colleague.
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