E
Edwin
Member
The examiner's report says that the value of senior tranches falls while the value of junior ones increases.
I think this means the prices of Senior tranches will rise because they are most attractive hence the most hard hit and prices of equity will decrease because the investors will lose the interest to buy the equity tranch if they certainly know their money will be gone.
Am I right?
I think this means the prices of Senior tranches will rise because they are most attractive hence the most hard hit and prices of equity will decrease because the investors will lose the interest to buy the equity tranch if they certainly know their money will be gone.
Am I right?
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