Catchword: waterfall structure

Filed under: English, Money & Finance, Jargon

Part of speech: n.

Quotation: A single trust might be further sliced and diced to create different derivative securities, each one subordinated to the next in terms of the claim on cash flow. In the event of a default, the highest-rated—and lowest-yielding—security has the first claim to the remaining mortgage payments. The next-highest-rated security has the next claim, and so on, in what the industry calls a “waterfall” structure.

Article or document title:
“A $700 billion question” (URL)

Author:
Michael Oneal

Article, document, publication, web site:
Orlando Sentinel

Publishing location:
Florida

Date of publication:
Sept. 28, 2008

This catchword has yet to be researched.