In Constructing CDOs, the Mortgage Loans Are Sliced into Tranches

question 36

Multiple Choice

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

---

Definitions:

Hormones

Chemical messengers produced by the endocrine glands, these compounds regulate various physiological functions and behaviors.

Neurotransmitters

Chemical messengers in the body that transmit signals from nerve cells to target cells.

Chemical Messengers

Substances in the body that transmit signals from one cell to another, often referred to as hormones or neurotransmitters.

Special Receptors

Unique sensory cells located throughout the body that respond to specific stimuli like light, sound, or pressure.