The following statement was made in a special report, Commercial Mortgage Special Report (September 19, 2005, p.

Question:

The following statement was made in a special report, “Commercial Mortgage Special Report” (September 19, 2005, p. 2), by FitchRatings: “Defeasance of a loan in a CMBS transaction is a positive credit event.” Explain why.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Bond Markets Analysis and Strategies

ISBN: 978-0133796773

9th edition

Authors: Frank J.Fabozzi

See More Books

Question Posted: Aug 22, 2015 07:37 AM

See More Questions

The following statement was made by a student: 'I cannot understand why accountants have such a high status and why they have so much influence.' How would you respond to such assertions?
The following statement was made by the vice president of finance of Orville Inc.: The managers of a company should use the same information as the shareholders of the firm. When managers use the...
The following statement was made by the vice president of finance of Haberman Inc.: "The managers of a company should use the same information as the shareholders of the firm. When managers use the...
Which is the most costly option (in terms of impact in other parts of the organization, not absolute dollars)? Which is the least costly?
What is unique about Preserves work environment and employee values that allow them to collaborate, innovate, and make decisions quickly?
Sales revenue Less cost of goods sold Opening inventories Add purchases Less closing Consolidation worksheet for financial year ended 30 June 2021 Joey Chandl Adjustments inventories Cost of goods...
A proton moves at $6.67 \times 10^{5} \mathrm{~m} / \mathrm{s}$ undeflected in the $+x$ direction through a velocity selector, a device containing crossed electric and magnetic fields. You...
1-800-GOT-JUNK? based in Vancouver, British Columbia, has a vision of creating the FedEx of junk removal. By the end of 2008, however, the company had over 340 franchises in the United States,...
4. In doubly linked lists, traversal can be performed?4 a) Only in forward direction b) Only in reverse direction c) In both directions d) None
Tiffany Lyons was just hired as the assistant treasurer of Key West Stores. The company is a specialty chain store with nine retail stores concentrated in one metropolitan area. Among other things,...
What types of prepayment protection provisions result in a prepayment premium being paid if a borrower prepays?
In an article by Matt Hudgines More CMBS Borrowers Pay off Balloon Mortgages on Time, posted on August 18, 2010, the following appeared Some 49.9% of the securitized loans that matured in July...
Evaluate the following double integral: (a) Analytically. (b) Using a multiple-application trapezoidal rule, with n = 2; and (c) Using single applications of Simpsons 1/3 rule. For (b) and (c),...
Why is debt considered to be risky? Why do companies borrow if debt is so risky?
What do you understand by the agency cost of free cash flow? How can it be overcome?
Futures contracts are usually much more liquid than forward contracts.
What are the different concepts of cash flow? Discuss them.
Collaterals are not required to be kept in futures contracts.
Discuss the following statement: Mobile genetic elements are parasites. They are always harmful to the host organism.
Calculate the number of neutrons of 239Pu.
True or false? a. The financial crisis was largely caused by banks taking large positions in the options and futures markets. b. The prime cause of the financial crisis was an expansion in bank...
The stock and bond markets are not the only financial markets. Give two or three additional examples.
What were the causes of the financial crisis? We mentioned several. Can you suggest others that we have not identified?
please use excel to solve this and format it the same way! thank you Paste F17 A > B Arial BIU fx C D 10 A A A E F G ||| H I J K 6 A 20-year, 6% quarterly coupon bond with a par value of $10,000 may...
Should a firm's EBT be based upon the actual or estimated return on plan assets.
You took out a loan woth an effective annual interest rate of 1 6 percent. What is the equivalent quarterly ( 3 month ) interest rate on this loan.

The following statement was made in a special report, Commercial Mortgage Special Report (September 19, 2005, p.

Question:

Step by Step Answer:

The defeasance of a loan in a CMBS transaction is a positive credit event because it can make credit ...View the full answer

Bond Markets Analysis and Strategies

Students also viewed these Corporate Finance questions