Why do CMBS trade in the market more like corporate bonds than RMBS?
Answer to relevant QuestionsWhat are the major differences in structuring CMBS and RMBS transactions? Answer the below questions. (a) What is meant by concentration risk? (b) How do rating agencies seek to limit the exposure of a pool of loans to concentration risk? In achieving the benefits associated with a securitization, why is the special purpose vehicle important to the transaction? Explain the difference in the treatment of principal received for a self-liquidating trust and a revolving trust. How does the management fee structure of ahedge fund differ from that of an asset manager of a mutual fund?
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