Cash Flow Waterfall
Definition
Paiement séquentiel (Sequential Pay)
Cascade de principal dans laquelle tout le principal disponible est affecté à la tranche senior en cours la plus prioritaire jusqu'à son remboursement intégral, avant tout flux vers les tranches junior. Standard pendant l'amortissement et les périodes post-déclenchement.
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.