Regardless, as the imminent unwind occurs (not if – when), it is always the equity tranche that will take the first loss, despite the novel development of the creeping equitization concept for companies such as Citigroup (and soon Bank Of America) where dilution and value destruction of senior capital tranches is only voluntary because the administration deems it so – the loaded gun of total system collapse pointed at one’s temple can be a persuasive mechanism.