In the typical pass-through structure of auto loan-backed deals, there is a:
A) Senior tranche.
B) Subordinated tranche.
C) Accrual tranche.
D) a and b only.
E) All of the above.

Question

Quizplus · Accepted Answer

In a typical pass-through structure of auto loan-backed deals, there is both a senior tranche and a subordinated tranche. The senior tranche has priority in terms of repayment, while the subordinated tranche takes on more risk and is paid after the senior tranche. An accrual tranche is not a standard feature in these types of deals.

In the Typical Pass-Through Structure of Auto Loan-Backed Deals, There