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.