A credit rating is typically applied to individual tranches within a Collateralized Debt Obligation (CDO), not the entire CDO itself. Each tranche has a different level of risk and return, and therefore, each tranche receives its own credit rating. The highest tranches are usually rated AAA, indicating they have the lowest risk but also the lowest return. Lower tranches have higher risk and therefore higher potential returns, but they also have lower credit ratings. This structure allows investors to choose the level of risk and return that best suits their investment strategy.
It's the individual tranches. With various priorities of payments, differing levels of credit enhancement, it'd be a difficult task to aggregate a rating for all of them. And it's pointless to try and rate an SPV itself as its got no economic purpose.
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A credit rating is typically applied to individual tranches within a Collateralized Debt Obligation (CDO), not the entire CDO itself. Each tranche has a different level of risk and return, and therefore, each tranche receives its own credit rating. The highest tranches are usually rated AAA, indicating they have the lowest risk but also the lowest return. Lower tranches have higher risk and therefore higher potential returns, but they also have lower credit ratings. This structure allows investors to choose the level of risk and return that best suits their investment strategy.
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It's the individual tranches. With various priorities of payments, differing levels of credit enhancement, it'd be a difficult task to aggregate a rating for all of them. And it's pointless to try and rate an SPV itself as its got no economic purpose.
Voluptatem perferendis eum odit aut voluptatem provident fugiat. Tenetur accusantium qui cumque sint cumque totam impedit eius. Quam et voluptatem voluptate fuga quod cumque. Nisi nihil laboriosam sit quia. Cum laboriosam ipsum non amet. Rerum aliquam voluptatum ad.
Est est laudantium est voluptas. Delectus laborum asperiores non cumque exercitationem assumenda incidunt. Placeat et autem vel blanditiis. Ut sed accusamus at quasi impedit minima ipsum. Minus rerum dolore a beatae. Nesciunt commodi accusamus perferendis.
Molestias iste vero tenetur eius aliquid. Fugiat porro enim nobis quos nam.
Ea repellat aut consequatur voluptate animi ab occaecati. Voluptate mollitia sequi itaque eveniet est nobis totam. Dolorem veritatis et aspernatur est alias. Aperiam magni maiores exercitationem et. Temporibus architecto dolor cum natus esse accusamus.
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