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That's quite literally why bonds are bonds and equity is equity...
by baq 1y ago
That's quite literally why bonds are bonds and equity is equity...
- jgalt212 1y agoPerhaps, but you do understand that the probability of every tranche regardless of seniority getting paid in full and the equity getting nothing is zero. It's mathematically impossible to pin the waterfall like this.
- baq 1y agoWith good enough lawyers mathematically impossible is practically relative. Assume the game is rigged, play accordingly. If it doesn't make sense, it makes sense.