Suppose that the loans in the collateral pool for a nonagency RMBS deal have a floating rate. What is the risk associated with issued fixed-rate bond classes?
Answer to relevant QuestionsWhat is the difference between a private-label and subprime mortgage-backed security? Be sure to mention how they differ in terms of credit enhancement. a. What is meant by a senior-subordinated structure? b. Why is the senior-subordinated structure a form of credit enhancement? The following appears on the web site of Chatham Financial, an advisory service: “Kennett Square, Pa., June 21, 2010 — Chatham Financial announced today that it advised Primus Capital in the defeasance of $76.9 million ...Why is it important to look at the dispersion of property types and geographical location of properties in analyzing a CMBS transaction? Why is the entity seeking to raise funds through a securitization referred to as the “seller” or the “originator”?
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