easy · Corporate Credit Analysis ratings

Comparing a TLB and a TLA for a single issuer, which statement regarding the 'weighted average life' (WAL) is typically true?

  1. The TLB will have a shorter WAL because institutional investors trade more frequently.
  2. Both have the same WAL because they are part of the same senior secured capital stack.
  3. The TLB will have a longer WAL because it has a longer tenor and lower amortization.
  4. The TLA will have a longer WAL because banks are patient, long-term lenders.

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