Would have to pay the short investors annual premiums

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Reference no: EM13292374

AIG was effectively the largest unfunded investor in the super-senior tranches of the Abacus 2004 deal.

This means that AIG:

A: Was committed to buy defaulted collateral from the CDO to make the short investors whole.

B: Effectively would sell the underlying subprime collateral as the mortgages began to default.

C: Would have to pay the short investors annual premiums

D: Owned all of the underlying subprime collateral of the Abacus CDO

Reference no: EM13292374

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