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subordinated classes

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subordinated classes

Those classes of collateralized mortgage backed securities that have the lowest priority to receive payments from the underlying mortgage loans, and thus the highest risk and the highest rate of return.



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Both senior and subordinated classes will be on Rating Watch Negative, as any continued deterioration is expected to cause additional downgrades.
28, 2003 Standard & Poor's--Standard & Poor's Ratings Services today said that the 'AAA' rated senior and subordinated classes of Australian RMBS transactions with exposure to GE Mortgage Insurance Pty.
Realized losses are allocated to the subordinated classes of the related group until all of the subordinated classes in the related group are reduced to zero before being allocated to the other loan group.
 
 
 
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