If there is a shortfall in interest paid to the senior


Question: a. If there is a shortfall in interest paid to the senior tranches of a CDO, how is the shortfall made up?

b. If coverage tests are failed for a CDO, how is the principal received from the collateral used?

The response must be typed, single spaced, must be in times new roman font (size 12) and must follow the APA format.

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Finance Basics: If there is a shortfall in interest paid to the senior
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