Question: Answer the below questions with True / False (a) A low Debt Service Coverage Ratio (DSCR) is the best predictor of a default during the

Answer the below questions with True / False (a)
Answer the below questions with True / False (a) A low Debt Service Coverage Ratio (DSCR) is the best predictor of a default during the loan term (T/F) (b) A commercial mortgage has lower prepayment risk compared to a residential mortgage (T/F) (c) A bearish bet on home ownership would involve buying homebuilders and shorting single family REITs and going long interest rate risk with Treasury futures. (T/F) (d) PE vehicles provide lower volatility and more liquidity versus public equity real estate vehicles. (T/F) (e) In an AB note structure, the B-note is typically included in the CMBS loan collateral pool. (T/F) (f) In 2010 and 2011, public REITs were active net sellers of real estate while private equity funds were active buyers. (g) There is a strong relationship between the rst and second mortgage. (T/F) (h) Preferred equity is not a loan agreement and carries a maturity that matches that of rst and second mortgages. (T/F)

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