Check all that is true about the SDA default model:

		If you know the beginning pool balance and assume a 200% SDA, you can calculate what the CDX is for each month
		SDA stands for standard default assumption
		SDA function for defaults takes the same shape as a PSA function for prepayments
		The SDA takes into account the month since origination
		Under the 100% SDA assumption no one defaults when their mortgage is a few months away from being paid out
		If you know the beginning pool balance and assume a 200% SDA, you can calculate what the CDR is for each month

Mark all the true statements about CMOs:

		In a sequential pay CMO, the tranche that gets paid off first is considered the safest
		CMO can have several classes (tranches) of securities backed by the same pool of mortgages
		In a sequential pay CMO, the tranche that gets paid last assumes the least default risk
		CMO can be agency or non-agency MBS
		In a sequential pay CMO with just an A and B tranches, all tranches get principal payments in the first month