cliff risk
n.— «CDOs-squared are often referred to as being subject to the so-called “cliff” risk, a phenomenon where the tranche gets wiped out quickly once losses reach it.» —“CDOs-Squared Demystified” by Nomura Securities International, Michiko Whetten, Mark Adelson Securitization.net Feb. 4, 2005. (source: Double-Tongued Dictionary)
Further reading
It was a dark and stormy night. So begins the long and increasingly convoluted prose of Edwards Bulwer-Lytton’s best-known novel. Today the annual Bulwer-Lytton Contest asks contestants for fanciful first sentences that are similarly...
You know that Yogi Berra quote about how Nobody ever comes here; it’s too crowded? Actually, the first person to use this was actress Suzanne Ridgeway, who appeared in several movies with The Three Stooges. A new book shows that many well...