a pool of mortgages that everyone is paying into (to a guy in Panama). The pot has different risk characteristics so the first 50 percent pay to the people who own the chunk of debt described as senior debt. Typically then there is junior debt people who get it next but get a better interest rate. At the bottom there is what is called the equity trenche even though that isnt actually equity and they get the highest interest rates. A bunch of discrete cash flows coming in on one side and riskordered credit on the other size. (it categorizes them by risk without having to actually distinguish the people) Categories include: o RMBS: retail mortgage backed securities o CNBS: commercial mortgage backed securities o ABS: asset backed securities o Can be backed by credit card recievables (same thing but with credit cards) o Or auto loans And then can be prime or sub-prime David Bowie: first securitization of performance sales (he securitized record sales)