Newhuman

That's a weird question, although I salute cpk for the explanation. The confusion comes from the second part of the question where it says "...relative to a sequential pay CMO without an accrual tranche.". Also, one tends to think of the Z tranche as a "support" tranche, which it isn't. So, it seemed to be comparing one structure with a Z and another structure without a Z...sure as hell, I would've gotten this wrong!



Edited 1 time(s). Last edit at Thursday, May 13, 2010 at 05:58PM by Dreary.