medium · Asset-Backed Securities tranching
In structured credit terminology, how is 'Hard Credit Support' for a senior tranche related to its attachment point?
- The hard credit support is equivalent to the senior tranche's attachment point.
- Hard credit support is always fixed at exactly half the attachment point.
- Hard credit support is always equal to the detachment point of the senior tranche itself.
- Hard credit support represents only the notional thickness of the senior tranche layer.
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