Cash Flow Waterfall
Definition
Pago Pro Rata (Pro Rata Pay)
Cascada de principal en la que los ingresos de principal se distribuyen proporcionalmente entre todos los tramos de forma simultánea. Habitual durante el período revolving dentro de los parámetros establecidos; cambia a secuencial en caso de incumplimiento de un trigger.
Deep Dives
Related Terms
Sequential Pay
A principal waterfall in which all available principal is applied to the most senior outstanding tranche until fully repaid before any proceeds flow to junior tranches. Standard during amortisation and post-trigger periods.
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.
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.