In constructing CDOs, the mortgage loans are sliced into tranches with the cash flowing first to the _____.
A. most senior tranche
B. mezzanine tranche
C. equity tranche
D. non-investment grade tranche
Answer:A
In constructing CDOs, the mortgage loans are sliced into tranches with the cash flowing first to the _____.
A. most senior tranche B. mezzanine tranche C. equity tranche D. non-investment grade tranche