Accrual Tranche Question

CFA Level II
#21

The tranche lowers contraction risk not prepayment risk for the other tranches

#22

max81 Wrote: ------------------------------------------------------- > The tranche lowers contraction risk not > prepayment risk for the other tranches Fair enough, but what is the difference between the two?

#23

bpdulog Wrote: ------------------------------------------------------- > max81 Wrote: > -------------------------------------------------- > ----- > > The tranche lowers contraction risk not > > prepayment risk for the other tranches > > > Fair enough, but what is the difference between > the two? These two should be the same