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%.
What's a Super-Senior Tranche? [View article]
News Flash to BofA's Lewis: Demand Isn't Problem - Supply Is [View article]