>Why is Wall Street spending all this time and energy in creating all these different securities? The primary purpose of these trades is to offload super senio

>Why is Wall Street spending all this time and energy in creating all these different securities? The primary purpose of these trades is to offload super senior risk from DB's balance sheet. Super senior risk is the risk that DB retained when it (very profitably) sold various other tranches on a group of assets (typically CDS on a bunch of corporate and sovereign credits). This type of risk is very difficult to sell as the return is very low and most entities they might buy unfunded protection from are likely to not be able to pay in the event that the swap pays out. Offloading that risk through a swap to a conduit like this allows DB to release (expensive) capital/reserves that would otherwise need to hold.