Question: Consider a CMBS backed by a 8 0 % LTV loan of a $ 5 0 , 0 0 0 , 0 0 0 office
Consider a CMBS backed by a LTV loan of a $ office building. The loan is interest only with an mortgage rate issued for years with monthly payments. The CMBS is issued with subordination with a coupon rate on the senior tranche equal to and coupon rate on the junior tranche equal to An interest only residual carrying no principal will be issued as well Same as Question Suppose that in month the borrower defaults on the underlying loan. After foreclosure of property value is recouped. How much does tranche B receive in month Assume that all the interest was paid for the month of default.
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