1 CDOs are normally divided into tranches Holders of this tr

1. CDOs are normally divided into tranches. Holders of this tranche are paid before other tranche holders.

a.primary

b.AAA grade

c.equity

d.mezzanine

e.senior

Solution

Option e is correct.

Creditor\'s receive payments in order of priority. The senior debt receive payments first before other tranche holder.

They include senior debt holders, liquidators and tax authorities.