medium · Asset-Backed Securities
A $500M CLO has a debt stack where the AAA tranche ($310M) pays SOFR + 150, the Mezzanine tranches ($140M) pay SOFR + 350, and Equity is $50M.
What is the weighted average cost of debt (WACD) for the rated notes?
- 2.12%
- 1.90%
- 2.50%
- 3.10%
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