Structured Credit & Securitization
Technical reference for CLO mechanics, ABS structures, waterfall priorities, and structured credit fundamentals.
Reference Terms
Click any term for detailed technical documentation.
Overcollateralization (OC) Tests
How OC tests protect senior debt through collateral coverage requirements and cash flow diversion.
Interest Coverage (IC) Tests
Measuring whether interest income covers debt payments and triggers for cash flow diversion.
Cash Flow Diversion
How failed coverage tests redirect cash from equity to debt tranches.
WARF (Weighted Average Rating Factor)
Measuring credit quality of CLO collateral pools using rating factors.
CCC Buckets
Limits on low-rated exposure and haircuts applied to excess CCC holdings.
Waterfall Priority
Sequential distribution of cash flows from senior debt to equity.