What types of investors would be attracted to an accrual bond?
Answer to relevant QuestionsSuppose that a tranche from which an inverse floater is created has an average life of five years. What will the average life of the inverse floaterbe? Why is a shifting interest mechanism included in a securitization where the collateral is residential mortgage loans? There are some mortgage loans that are balloon loans. This means that when the loan matures, there is a mortgage balance that will require financing. It is the responsibility of the borrower to obtain the refinancing. What ...How can excess spread be a form of credit enhancement? 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 ...
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