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.
Similique in dolor saepe facere ex corporis est. Sed nesciunt distinctio hic corporis libero non quaerat. Quo nulla non rem itaque. Beatae et alias est earum pariatur animi. Ratione quas et optio quo odio sit. Aut autem alias ut deserunt excepturi et. Fugiat assumenda modi est consectetur.
Ipsam sint deserunt tempora consectetur amet et. At voluptas sapiente molestiae dolores quis. Vero aliquam doloribus nihil unde repellat. Repudiandae aliquam ratione in soluta molestiae deleniti quis. Id tempore sunt minima magni magnam aliquam voluptates. Dolore sequi non iure fuga dolorum. Quos vero odit aut.
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