Sentence examples for top tranches from inspiring English sources
It was not just the top tranches that got triple-A ratings.
For example, IASB is likely to allow only the very top tranches of asset-backed securities to be classified as loans.
To construct CDOs, investment banks work intensively with rating agencies to achieve investment-grade ratings for the top tranches, without which they cannot be sold to a wide range of investors.
Banks kept the top tranches thinking they were the safest, he said.
Top tranches were given a AAA rating and were to be paid out first.
The modelling done to obtain investment grade ratings on the top tranches of CDO bonds has so far proved stable.
By September 2003 the top three tranches of the CDO had fallen below a BBB rating (to "junk" status).
Top-rated tranches could hold mortgages and other shaky loans that were at risk of defaulting if the overall housing market weakened.
The indexes sank to all time lows Tuesday, and even the top-rated tranches had shown steep declines from 100 basis points to 80 or below.
AIG was rated AAA, Lehman's Bonds were rated AAA, Italian bonds were selling at prices close to those of German Bunds in 2005, top tier CDO tranches were rated AAA, and the list goes on.
By adding other tranches on top, each taking progressively less risk, it is possible to create a security that the rating agencies place in the coveted triple A class from a pile of junk bonds.Fine in theory, but only now are these new instruments being tested.
