A notes
Encyclopedia
A notes are a tranche
of an Asset Backed Securities (ABS) or mortgage-backed security
(MBS) issue that is senior to other tranches, such as the class B notes, in credit terms, as well as priority of repayment of principal.
Tranche
In structured finance, a tranche is one of a number of related securities offered as part of the same transaction. The word tranche is French for slice, section, series, or portion, and is cognate to English trench . In the financial sense of the word, each bond is a different slice of the deal's...
of an Asset Backed Securities (ABS) or mortgage-backed security
Mortgage-backed security
A mortgage-backed security is an asset-backed security that represents a claim on the cash flows from mortgage loans through a process known as securitization.-Securitization:...
(MBS) issue that is senior to other tranches, such as the class B notes, in credit terms, as well as priority of repayment of principal.