Well the 10% is I assume an equity tranche. Ie any loss on any loan in the portfolio goes to that tranche first up until the total losses exceed 10%. So the ban

Well the 10% is I assume an equity tranche. Ie any loss on any loan in the portfolio goes to that tranche first up until the total losses exceed 10%. So the bank still has significant skin in the game, unless their short term profit exceeds 10%, which seems kind of high to me (but I don’t know the terms of the transaction you refer to).