Tranches in securitization

[@bionicturtle]

@fth9110 yes, agreed: the subordinated tranche should have the higher coupon. Nice catch! Thank you, David

[@fth9110]

Great video but in your last example the coupon received by the senior tranche (10%) should be inferior to that received by the subordinated tranche (2%)

[@uicswansgphio7158]

This was really helpful!!! Thank you!! :)

[@KarenchikJan]

What happens if the assets that are being securitized are not on fixed rate but rather float? Do they use the same technique as you showed?

[@LoveFinance]

When talking about securitization "tranches" always come up. what are they ? and what purpose do they serve?

[@DraughtOfPeace]

Could you explain how the dollar value is 4.5?