CDOs are typically sold to the market in categories representing the credit quality of the borrowers in the mortgages.Generally speaking,the ________ tranches have a credit quality of AAA.________ tranches have a quality ranging from AA to BB,and ________ tranches have ratings below BB.
A) senior, equity; mezzanine
B) senior, mezzanine; equity
C) mezzanine; equity; senior
D) equity; senior; mezzanine
Correct Answer:
Verified
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