A-note, Corporate Finance

A-Note is the highest tranche of an asset backed security or another structured financial product. An A-note is superior to other notes, like B-notes in bankruptcy or other credit proceedings, and is paid back first with money from the underlying assets. They can be tagged AAA, AA, or A, on the basis of the credit quality of the underlying asset. They can also be known as a class a note.

Lower tranches of notes are known as subordinate notes. Whereas an A-note does provide more credit protection than any other notes, investors in this tranche be required to still pay attention to the credit worthiness of investments in subordinate classes. If the risk levels of those investments rise, the chances of failure of payment and repayment risk rise.

 

 

 

Posted Date: 7/27/2012 1:26:19 AM | Location : United States







Related Discussions:- A-note, Assignment Help, Ask Question on A-note, Get Answer, Expert's Help, A-note Discussions

Write discussion on A-note
Your posts are moderated
Related Questions
Table gives the average MAPE, again for all SKUs with positive preview demand together (overall) and also per preview demand class. We remark that despite of the large differences

This subject has a major individual assignment consisting of a number of tasks (parts). The assignment has been designed with the aim of providing you a practical application case

differentiate between allocative efficiency and pricing efficiency

What are "in-market" mergers? A: An in-market merger is one that takes place between two banks operating in the same geographic area, typically a city or metropolitan area. The

considering floatation on the stock exchange, produce a report explaining advantage of such a move

On December 31, 2009, the Real Weapons Factory reported total stockholders' equity of $447,200. On that date, total contributed capital was $360,000. During 2009, the firm had tota

Nipissing, Inc,, is considering a new three year expansion project that requires an initial fixed asset investment of $2.4 million. The fixed asset falls in CCA Class 8 with a a 20

B. Zehpher Intelligence A second possible Acquisition, Zehpher Intelligence, an IT company is operating in a rapid growth industry. Relevant financials: Free cash flow for the pa

This is an accounting term which is applicable to stockholders of closely going businesses. Accumulated earnings and profits are a company's net profits after subtracting distribut

Q. Establishing the scale and cost of phoenix activity? In 1996, the Australian Securities Commission (ASC, now ASIC) quantified the annual loss to Australian businesses due to