little bit more reward than senior, but they have less risk than this equity tranche.

And I've done a video on CDOs, but just to kind of have review,

like you remove things from money?

But definitely until about 2006.

So now we're going to take this mortgage backed security and introduce one step further kind of permutation or derivative of what this is.

And I explained what those are.

Let's say some of these borrowers start defaulting.

CDOs, collateralized debt obligations, are derived from mortgage backed securities.

A tranche is just a bucket, if you will, of the asset.

Or private placements in some way.

So I use it essentially just to build a big vault, right?

Essentially these were private equity sales.

You just feel richer.

But anyway, I'll try to move on without my pen.

If you take two anti derivatives you get back to the negative of itself.

That's all derivatives are.

Boy, Sal, that sounds amazing.

This is the same as this, which are both the anti derivative of this, although they are all the same.

An ongoing free press investigation turned the attention to who owns the voting machine companies.

You pay this guy 21 million or this group of guys or gals 21 million.

All you had to do was track the manufacturing dates offset by weather and the derivative of the Nikkei Index.

And then this top tranche, you could call it the most junior tranche. it's sometimes called the equity tranche.

All derivative means is you take one type of asset and you slice and dice it in a way to spread the risk, or whatever.

lot of hand waving saying, oh, it's a more complicated form of security.

And maybe they give this tranche, and I'm making up things, but maybe they give it a AA rating.

So out of the 100 million every year, 24 million is going to go to these guys, 21 million is going to go to these guys, and then whatever's left over is going to go to the equity tranche.

I took 100,000 of it, turned it into cash, and just went on a great one year long vacation.

Which probably,you know, that's a sign that the stink is starting to emerge from this part of the balance sheet.

So in this situation what we did is we raised out of the 1 billion we needed 400 million from the senior tranche, 300 million from the mezzanine tranche, and then 300 million from the equity tranche.

This guy is still going to get 24 million, this guy is still going to get 21 million, but now this guy is going to get 45 million.

And I know that you have some type of assets, you have some of these residential mortgage backed securities, or you have some of these derivative assets there.