Cash Flow Waterfall
Definition
Sequentielle Zahlung (Sequential Pay)
Hauptwasserfall, bei dem alle verfügbaren Tilgungsmittel zunächst vollständig auf die seniorste ausstehende Tranche angewendet werden, bevor Erlöse an nachrangige Tranchen fließen. Standard während der Tilgungsphase und nach Trigger-Ereignissen.
Deep Dives
Related Terms
Cash Flow Waterfall
The contractual priority of payment sequence in a securitisation. Standard structure: senior expenses → senior interest → OC test → junior interest → reserve replenishment → equity distributions.
Pro Rata Pay
A principal waterfall in which principal proceeds are distributed proportionally across all tranches simultaneously. Common during revolving period within parameters; switches to sequential on trigger breach.
Turbo Redemption
Accelerated repayment of senior notes triggered by OC or IC test failure, funded by diverting excess spread. Conditional turbo: applies only while the test is failing. Unconditional turbo: always redirects; common in European CLOs.