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
A factoring company has offered a one-year agreement with Glub Ltd to both manage its debtors and advanced 80 per cent of the value of all its invoices immediately a sale is invoi

You are a ceo of a sotware firm that has limited access to debt equity markets. The average return on last year projects is 28 % . and cost of capital is 12%. would npv pr Irr be

determine the pay \back period for the project.

As the company''s sales and earnings increased, so did the demand for capital. The firm''s needs included inventory as well as additional space to house the inventory, computer fac

a) Explain what you understand by ‘Branding'? b) A ‘Corporate identity' is often viewed as being composed of three parts; state them giving two examples of each. c) ‘Corpo

The tax rates are as shown. Your firm currently has taxable income of $79,000. How much additional tax will you owe if you increase your taxable income by $30,000? Taxable Income

From Finance.yahoo.com Part 1: Show the P/E ratio for each company (as reported in finance.yahoo.com). Answer the question: Which of these two firms seems to be more of a "growth

I need some ideas or topic for my 8-12 pages semester assignment. Further more tools to solve the assignment. I''m working in an engineering company (in a technical role).

Part II The cost of equity (discount rate) can also be determined by using the Capital Asset Pricing Model (CAPM). Calculating the cost of equity using the CAPM model is often mor

Suppose you take out a loan of $10,000, repayable by five equal annual instalments. The interest rate is 10% per year. (a) How much do you need to repay per year to the nearest ce