Aig was effectively the largest unfunded investor in the, Ask an Expert

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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

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M9871703

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