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Postosuchus · 2024-05-23 · Original thread
Yes, absolutely. You will be shocked how complex CMOs might be just to calculate plain cashflow on a tranche (https://www.amazon.com/Handbook-Mortgage-Backed-Securities-7... is a great standard treatise on the topic). Add to this interest rate modeling and prepayment modeling - and we are talking serious logical complexity. And this is the area where people get REALLY pissed when you have bugs.

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