Assume That the CDX-ITraxx Index Has 125 Names in It

question 15

Multiple Choice

Assume that the CDX-iTraxx index has 125 names in it, for a total notional of $100,000,000. If the recovery rate on default of any name is 40%, at least how many names must default for the 3-7% tranche of the CDO to be wiped out?

• A) 7
• B) 8
• C) 15
• D) 23

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Definitions:

Professional Development

Continuous learning and training activities undertaken by individuals to enhance their skills, knowledge, and competencies required in their professional fields.

Career Ladders

Structured sequences of job positions through which an individual can progress within an organization, typically associated with increased responsibility and rewards.

Functional Departmentation

The process of organizing an organization's structure based on specialized functions such as marketing, finance, and operations.

Functional Departmentation

The process of organizing an organization's structure based on specialized functions or tasks such as marketing, finance, or operations.