a-z list, categories and sub categories in loop

So you want to list the categories in a tree structure, in alphabetical order, showing ALL categories (even empty ones)? If so, try this:

<?php
    $args = array('orderby' => 'name', 'order' => 'ASC', 'hide_empty' => false);
    $categories = wp_list_categories($args);
?>

Reference: wp_list_categories

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