问一道题：NO.PZ2018062020000035

问题如下：

The key to a CDO’s viability is the creation of a structure with a competitive return for the:

选项：

senior tranche.

mezzanine tranche.

subordinated tranche.

解释：

C is correct. The key to whether a CDO is viable is whether a structure can be created that offers a competitive return for the subordinated tranche (often referred to as the residual or equity tranche). Investors in a subordinated tranche typically use borrowed funds (the bond classes issued) to generate a return above the funding cost.

A is incorrect because the viability of a CDO depends on a structure that offers a competitive return for the subordinated tranche rather than the senior tranche.

B is incorrect because the viability of a CDO depends on a structure that offers a competitive return for the subordinated tranche rather than the mezzanine tranche.