MiniMe7

Did the statement relate to a CDO? If it was for a CMO, then maybe it disregarded the accrual tranche. All tranches receive interest payments (except accrual) and principal payments go to the most senior tranche. Once all of the senior tranches are paid off, the accrual tranche begins to receive its interest and principal.

One of the benefits of the accrual tranche is that it doe not have any reinvestment risk because it does not receive cash flows until the other tranches have been retired.