waterfall structure
 n.— «A single trust might be further sliced and diced to create different derivative securities, each one subordinated to the next in terms of the claim on cash flow. In the event of a default, the highest-rated—and lowest-yielding—security has the first claim to the remaining mortgage payments. The next-highest-rated security has the next claim, and so on, in what the industry calls a “waterfall” structure.» —“A $700 billion question” by Michael Oneal Orlando Sentinel (Florida) Sept. 28, 2008. (source: Double-Tongued Dictionary)

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