Cash Flow Waterfall
Definition
Paiement au prorata (Pro Rata Pay)
Cascade de principal dans laquelle les produits de principal sont distribués proportionnellement à toutes les tranches simultanément. Courant pendant la période renouvelable dans les paramètres prévus ; bascule en séquentiel en cas de franchissement d'un déclencheur.
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.