What is the realized cash flow to the senior class in year

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Reference no: EM132070451

Given a CMBS deal with the following characteristics:

20 interest only loans, each loan is for $20M, 7% interest rate, 2 year maturity, each has an initial LTV of 75%

30% pari passu piece of a loan on a property worth $250,000,000 with an initial LTV of 85%, 6.5% rate and 1 year maturity

20% credit support

A senior class with a 5.5% coupon, a junior class with a 7% coupon, an a residual IO security will be formed

In year 1, the loan that has a pari passu piece within this security defaults. The property is sold in foreclosure instantaneously for $200,000,000.

What is the realized cash flow to the senior class in year 1? Round to the nearest dollar.

Reference no: EM132070451

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