Sentences with phrase «residual equity tranche»

-- The inverse is also true — that is, all loan default losses are first absorbed by the residual equity tranche, then the mezzanine, the BBB notes, and ultimately by the AAA notes (ideally in v rare circumstances).

The inherent leverage / risk of their CLO residual equity tranche portfolio has somewhat limited my position.

Livermore Investments (LIV: LN) hasn't been a core holding for a long time now — I kept a rump position as a substitute (CLO residual equity tranche) investment in light of my continued under - weight of Tetragon Financial Group (TFG: NA).

Not exact matches

There are often tranches rated AAA, AA +, AA, AA -, A +, A, A -, BBB +, BBB, BBB -, and junk - rated tranches, before ending with the residual tranche, which has the equity interest.