1)As a generalization, investment grade bonds of fixed-rate CMBS deals are priced at a spread over __________...
Question:
1)As a generalization, investment grade bonds of fixed-rate CMBS deals are priced at a spread over __________ rates, while the non-investment grade bonds are priced at a spread over _______________rates.
2)As we have observed recently in what has been labeled "tranche warfare", defaulted loans resolved by the Special Servicers through an extension of the original maturity date will negatively impact the marked-to-market value of the ___________________ tranches.
3)Beginning in 2004 and 2005, in order to address the concerns and fears of AAA investors that subordination levels of these bonds were becoming too small, issuers of CMBS bonds dealt with these concerns by ____________________________________________________________________ _____________________________________________________________________.
As loans originated for securitization became larger, and because investors avoid the concentration of risk inherent in single-asset securitizations, issuers dealt with investor concerns by segmenting these large loans into _____________________notes.