1 -Do not defualt but incurr losses if SPV collateral defaults - WHY??
2 -No default if interest payments not made – why?
3 - Default in Collateral does not result in default to SPV or a Bond tranche— why???
I’m going to try to answer my own questions
1 - SPV is seperate from the actual pool
2 - no default because is not an actual indenture agreeement
3 - maybe be overcollaterized?