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The dizzyingly complex securitized deals of the 2000s were a little like polygamous marriages in which the vows-in this case, pooling and servicing agreements did not really count on facing sickness as well as health, or being poorer as well as richer. As long as cash flow was positive and debt was serviced, the marriages were harmonious. But as the market turned turbulent and deals began to run aground, the spouses began to squabble. More to the point, they hauled one another into court to assert their rights within the capital stack and protect their investments.

The result is an outbreak of tranche warfare: infighting among lenders and, in some cases, investors. Arguably the highest-profile example has stemmed from the foreclosure of the Peter Cooper Village/ Stuyvesant Town complex in Manhattan, but it’s hardly an isolated incident.

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