1.

Select the correct answer: Securitizations typically issue multiple bond classes that customize risk, rating, timing of repayment and relative lien on collateral. This structuring technique is referred to as:

		Bankruptcy Remoteness
		Trustee
		Performance Triggers
		Tranching

2. Fill in the blank: The [ ] has been found in numerous studies to be the single most important determinant of the likelihood of of a mortgage borrowers default.

3.

Select the reasons why Institutional Investors may find High Yield Debt Attractive.

		Diversification Theory
		Low Cyclicality
		Capital Gain Potential
		High Interest Coupons
		Lower Refinancing Risk

4. True or False: Contracts such as lease, mortgages and loans that define a payment obligation stream create the contractual cash flows necessary for a securitization.