Structure and stress-test
a credit pool before issuance.

Underlying credit positions generate cashflow that flows into the vault. That cashflow pays tranches from the top down: Senior first (lowest yield, lowest risk), then Mezzanine, then Equity. When losses occur they are absorbed from the bottom up – Equity first, then Mezz, finally Senior. This waterfall is what lets three different risk profiles coexist in a single vault.