What is meant by the prospectus prepayment curve?
Answer to relevant QuestionsAnswer the below questions. a. What is meant by an involuntary prepayment? b. Why is the distinction between a voluntary and involuntary prepayment important in non agency RMBS? What is the difference between a private-label and subprime mortgage-backed security? Be sure to mention how they differ in terms of credit enhancement. Answer the below questions. a. What is the difference between credit tranching and prepayment tranching? b. Why would there be both types of tranching in a nonagency deal but only one type of tranching in an agency deal? Answer the below questions. a. Explain the cross-collateralization feature and its significance in a single-borrower / multiproperty CMBS transaction. b. Explain the cross-default feature and its significance in a ...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 ...
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