floater/inverse-floater
1. What is a “floater”/“inverse-floater” tranche in a CMO offering?
2. Excel. Refer to the “Ch20 CMBS” tab in the Excel Workbook provided on the Web site. Suppose there is default at maturity and the property sells for 90 percent of the loan balance. What are the returns to the subordinate tranche and residual?
floater/inverse-floater