--%>
Assignment Help - homework help

Four-Tranche Sequential-Pay Structure

1. How would you fund the tranche Z of the example in the securitization manual?

2. What reinvestment rate from the excess spread will guarantee that there will be sufficient money to pay0ff creditors of tranche Z?

3. When tranche Z creditors will get their final check?

Four-tranche pass-through created from the underlying collateral with WAC of .2052, WAM of 102 months, and weighted average pass-through rate of 19 percent Assuming 3 percent prepayment after 18 months for 10-year residential mortgages in Iran

 

Par Amount

Coupon Rate

Maturity in Months

Principal Pay-down Window In Months*

Average Life**

In year

Tranche A

21,250,000,000

0.174

24

23

1.04

Tranche B

21,250,000,000

0.181

43

20

2.82

Tranche C

21,250,000,000

0.190

61

18

4.40

Z Bonds

21,250,000,000

0.215

 

 

 

Total collateral

IR850 billion

 

 

 

 

Pass-through Rate

 

0.190

102

 

4.96    years

WAC of Collateral

 

0.2052

 

 

 

WAM of Collateral

 

102 Months

 

 

 

1.This is the time period between the beginning and the end of total principal payments to a tranche.

2.This is the average time to receipt of principal amounts (scheduled principal payment and projected prepayments), weighted by the amount of expected principal.

   Related Questions in Finance Basics

  • Q : Explain Language Sheets Language Sheets

    Language Sheets: The copies of the current Budget Act appropriation items offered to Finance and departmental staff each fall to update for the proposed Governor’s Budget. Such updated language sheets become the proposed Budget Bill. In spring,

    		•
  • Q : Define Allotment Allotment : The

    Allotment: The permitted division of an amount (generally of an appropriation) to be expended for a specific purpose throughout a particular time period. An allotment is usually authorized on line item expenditure basis by program or

    		•
  • Q : What is Reverted Appropriation Reverted

    Reverted Appropriation: An appropriation which is reverted to its fund source after the date its liquidation period has terminated.

    		•
  • Q : How the production of public goods will

    Normal 0 false false

    		•
  • Q : Define the term floor Floor: The

    Floor: The Assembly or Senate chambers or the word employed to explain the location of a bill or the kind of session. Matters might be termed to as “on the floor”.

    		•
  • Q : Health finance 7.2 The audiology

    7.2 The audiology department at Randall Clinic offers many services to the clinic's patients. The three most common, along with cost and utilization data, are as follows: Service Variable Cost Annual Direct Annual # Visits per Service Fixed Costs Basic exam $5 $50,000 3,000 Advanced examination $7 $

    		•
  • Q : State time dimensions State time

    State time dimensions of the income statement, the balance sheet, and the statement of cash flows?  Describe. The income statement is such as a video: This measures a firm's profitability on a period of time (that can be a week, a

    		•
  • Q : Difference in annuities due or ordinary

    Normal 0 false false

    		•
  • Q : Define Trigger Trigger : An event which

    Trigger: An event which causes an action or actions. The triggers can be active (like pressing the update key to validate input to a database) or passive (like a tickler file to repeat of an activity). For illustration, budget "trigger" mechanisms hav

    		•
  • Q : Methods to determine Promotional Budget

    What are the methods to determine Promotional Budget? Explain in brief.

    		•