Subordination

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Exhaustion Point

The upper tranche boundary that specifies, in addition to the lower tranche boundary (attachment point), a collateralized debt obligation tranche...

ABS

It stands for asset backed security; a security that is created by means of a process called "securitization"- the creation...

Asset-Backed Security

A security that is created by means of a process called "securitization"- the creation of securities backed by pools of...

Step-Down

In the context of subprime deals, it is a provision that entails the conversion of deal structure from sequential pay…

Detachment Point

The upper tranche boundary that specifies, in addition to the lower tranche boundary (attachment point), a collateralized debt obligation tranche...

Attachment Point

The lower tranche boundary that specifies, in addition to the upper tranche boundary (detachment point), a collateralized debt obligation tranche...

An agreement by one creditor (the subordinated or junior creditor) to be paid by a borrower or issuer only after...

Structural Subordination

A subordination of mezzanine capital that is defined by the borrower group's corporate structure. For example, this type of subordination...

Subordinated Sukuk

A type of sukuk structure in which sukuk certificates give sukuk holders residual claim over the assets financed by their funds. This claim ranks...