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When you increase correlation, you are increasing the probability of having very large losses, as well as the probability of having no loss at all. So, you are increasing the probability that senior tranches might experience significant losses but also the probability that the equity tranche is left untouched. As a consequance the spread on the latter decreases.
It is: 3 to 1
Attrition Management
2 to 3
The 4 means how many wins you have. The 0 means how many losses you have.