Global Definitions Database

The highest tranche of an asset backed security (ABS) or other structured financial product; during bankruptcy, default, or other credit proceedings, an A note is senior to other notes, such as B notes; the senior status allows the payment from the underlying assets of A note debt before others; an A note can be rated, or labeled, into AAA, AA or A categories, depending on the credit quality of the underlying asset; also known as a “class A note”.