medium · Asset-Backed Securities collateral
What happens to the WAL of a bond if it is moved from a sequential-pay structure to a pro-rata structure?
- Both the senior and junior WALs will shorten.
- The senior WAL will shorten and the junior WAL will lengthen.
- The WAL of the entire pool will change.
- The senior WAL will lengthen and the junior WAL will shorten.
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