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# CDS vs TRS vs CLN

#### nansverma

##### Member
This was an interesting and helpful topic to read on. Thanks everyone who contributed. In Crouhy notes on Securitization in Credit Risk Module, Page 31, I think the terminology for CLN is more like WIki :
 In this structure there are no margin calls, and the maximum downside for the investor is the initial investment of $15 million. If the fall in the value of the loan portfolio is greater than$15 million, then the investor defaults and the bank absorbs any additional loss beyond that limit. For the investor, this is the equivalent of being long a credit default swap written by the bank.