Why is it not adequate to look at the weighted-average debt-to-service coverage ratio and weighted-average loan-to-value ratio for the pool of commercial mortgage loans in assessing the potential performance of a CMBS transaction?
Answer to relevant QuestionsWhy is it important to look at the dispersion of property types and geographical location of properties in analyzing a CMBS transaction? 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 successfully met their ...A corporation is considering a securitization and is considering two possible credit enhancement structures backed by a pool of automobile loans. Total principal value underlying the asset-backed security is $300 ...In achieving the benefits associated with a securitization, why is the special purpose vehicle important to the transaction? Answer the below questions. (a) In a securitization, what is a revolving period? (b) In a securitization, what is an early amortization provision?
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