Subordinated note

The credit enhancement for a particular class of notes is the sum of all the credit support provided by the subordinated notes (if any), the reserve fund, and the protection provided by the excess spread. As the collateral is paid down and the notes redeemed, the credit enhancement for all classes of notes will improve. This steady improvement is the main reason behind the ratings upgrades in European RMBS. 

An asset performance trigger event would occur if a principal deficiency is recorded in the Class A Principal Deficiency Ledger. This means that the total balance of realised losses that have not been covered by either the reserve fund or with excess spread exceed the aggregate outstanding amount of the subordinate notes. If this occurs, all receipts on the mortgages will be allocated to the issuers and the seller on a pro rata basis. The notes will start to redeem early with all the Class A notes being redeemed on a pro rata basis. When all the Class A notes have been redeemed in full, the Class B notes would be redeemed, and so on for all other classes of notes until all the notes are redeemed or the trust no longer has any assets. 

The credit enhancement in the master trust transaction is the sum of all the credit support provided by the subordinated notes (if any), the... 

The calculation of credit enhancement for notes in a master trust transaction seems more complicated than in a traditional pass-through transaction because subordinated notes from an earlier series are expected to be redeemed before the senior notes of later series. However, if the mortgages were to perform poorly, the trigger events ensure that all outstanding junior notes would only be repaid after all the senior notes. So the credit enhancement can be calculated as the aggregate balance of subordinate notes as a proportion of the total notes outstanding. 

The expected returns of the subordinated notes are shown at Exhibit 15.10, under specified assumptions. 

The structure diagram is shown at Exhibit 15.14. The note tranch-ing is shown at Exhibit 15.15, while the expected return of the subordinated notes is shown at Exhibit 15.16. 

The Class A-1 notes also have credit enhancement from Class A-3. This works as follows where the subordinated notes are reduced to zero, any losses on the underlying pool of mortgages... 

Having noted these technical matters, it should, however, also be observed that the operational flexibility of available processing equipment usually quite subordinates them to coal costs (which represent between 25 and kO per cent of the plant gate costs of the product). Most future conversion plants are therefore likely to use lignites and subbituminous coals which, in Canada as in many other countries, are abundantly available at low cost through surface-mining. 

Note that the use of the colon in (9) indicated the subordination of the following rings to the central one, whereas the semicolon in (13) indicates the independence of these rings. Also, the final semicolon in (13) represents the continuation (back to the beginning) of the super-cycle. 

It is interesting to note the parallels observed when assessing the behavioral despair seen in a2A-AR / mice with the findings in the male tree shrew subordinate stress model these collective data suggest that chronic stress may (via an unknown mechanism) reduce beneficial effects of the a2A-AR in depression and stress, leading to behavioral despair, as witnessed in animals deficient for the oc2A-AR. Moreover, a2A-AR activation (or protection from downregulation) could offer a protective mechanism to combat stressful or stress-related events. 

Tom has logged his finding in his lab notebook and decided to tell Joe about it when Joe returns from vacation in Vegas. Meanwhile, he is very exicited about his find, so he chooses to tell one other person his fnend Sue, a synthetic organic chemist from another department with whom he frequently has lunch. (It should be noted that in most corporations, particularly those for whom public relations may involve sensitive issues, there are strict rules about discussion of work matters outside the supervisor/subordinate/group relationship.) Tom asks Sue to have lunch with him at a restaurant not usually frequented by employees of LS. 

Fig. 4.21 Idealized soil profile showing master soil horizons and horizon abbreviations. The 0, A, E and B master horizons can be further subdivided into subordinate horizons depending on composition (see Figs 4.23M-.25). Note that the O horizon is composed of fresh (L) and partially decomposed (F) organic litter. Soil profiles are typically 0.5-1.0m thick such that master horizons are typically centimetres to tens of centimetres thick. SOM, soil organic matter CEC, cation exchange capacity.

Triassic or Tertiary NNW-SSE fractures formed in an ambient E-W to ENE-WSW extensional stress regime would be expected to show evidence of sinistral rather than dextral transtension. Kerr (1987) noted the evidence for late-stage dextral shear reactivation of the NNW-SSE faults, which he ascribed to a short-lived change in the Tertiary stress field. However, Tertiary veins in the Cretaceous carbonates near Ballycastle are dominated by NE-SW to ENE-WSW orientations, with a subordinate NNW-SSE to N-S set. Both are filled by multiple calcite cements with no evidence of fer-... 

An effective way of achieving conciseness is through subordination of sentences (see also Section 28.2.2). Another step is to write confidently. The following are examples of degrees of authorial insecurity I feel that, It should be noted, and The reason is that. If something should be noted, then do so. The note itself is sufficient. To preface it by saying It should be noted that or It is worthy to note that is to show your insecurity in your own words. 

Let us note that S5mthesis temperature enhancement results in some h reduction (from 0.541 up to 0.523). This corresponds to the theorem about subordination (the Eq. (15)). And at last, as it has been shown in Ref [88], medium character defines the reaction order n ... 

European RMBS transactions contain a combination of various features designed to protect investors from the impact of defaults on mortgages in the underlying collateral pool, including excess spread, reserve fund, and subordination of any lower priority notes. 

The cash flow waterfall encapsulates the subordination of the junior classes of notes. As all cash received is used to pay items on the senior notes first, this will inevitably mean that any loss that cannot be covered through trapping excess spread or from the reserve fund will result in a shortfall in the funds available to redeem the most junior class of notes. 

A typical issue will feature a triple-A rated tranche, a single-A rated tranche, a triple-B rated tranche and a dynamic spread account. The subordination structure for a typical credit card issue is shown in Exhibit 13.8. In this example, the class A noteholders benefit from the subordination of the class B and class C notes, which together provide 12% credit enhancement. The class B noteholders benefit from the subordination of the class C notes, which provide 7% credit enhancement. The class C noteholders benefit from a dynamic spread account. 

The FIAT 1 issue benefits from a credit enhancement level of 11% from subordination of the unrated class M notes. The Globaldrive B issue benefits from 4% credit enhancement of the class B notes and a reserve fund, which builds up from 1.8% at the closing date to 2.75% of the balance of the initial pool. Fully funded, the Globaldrive B class A notes benefit from a total credit enhancement of 6.75%. The PPAF 1 issue benefits from a credit enhancement level of 33.3% from subordination of the class B and the class C notes (20.5% and 8.5%, respectively) and a cash reserve of 4.3% of the initial notes balance. 

Common to all the CDO themes are the use of various forms of credit enhancement. In addition to the natural credit enhancement afford through subordination of sequential pay notes, the following methods... 

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