Question: Based on your analysis in step 3), you should identify an adverse economic scenario that you believe is likely to cause one of the CMBS

Based on your analysis in step 3), you should identify an adverse economic scenario that you believe is likely to cause one of the CMBS loans to default. Please outline the economic reasons that may result in a default by the borrower. Then, you can assign a probability to this scenario and estimate the expected cash flows to the A-3 bond (i.e., the bond with the lowest priority to receive cash flows) given the default assumption

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