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by bko 2413 days ago
That's not correct. The collateral is usually shared among all tranches. You could have MBS deals w/ tranches backed by separate collateral pools but these are defined at origination. It's not that different tranches are backed by different subsets of the collateral. The cash received from all mortgages is pooled and then prioritized based on tranche seniority and other rules specific to the securitization.