Can you describe how you create these tranches with teaser rate 1% loans. Were they bundled with higher interest rate loans to create tranches with the high enough interest yields for the AAA, AA etc. tranches. I just don't see how they gave these two year teaser loans and bundled them into the tranches with yields for the first two years at 1%.
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Can you describe how you create these tranches with teaser rate 1% loans. Were they bundled with higher interest rate loans to create tranches with the high enough interest yields for the AAA, AA etc. tranches. I just don't see how they gave these two year teaser loans and bundled them into the tranches with yields for the first two years at 1%.
Dec 03 05:01 am
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