Question: PLEASE ANSWER BOTH COMPLETELY THANK YOU QUESTION 1 Consider a sequential pay CMO that is backed by 1 0 0 mortgages with average balance of
PLEASE ANSWER BOTH COMPLETELY THANK YOU
QUESTION
Consider a sequential pay CMO that is backed by mortgages with average balance of $ each. The mortgages have monthly payments with WAM years and WAC There is a servicing fee of and prepayment is according to PSA. Tranche A holds $ of the mortgage pool principal at origination, tranche B holds $ and tranche Z holds $ The rest of the pool principal is held by the SPV as a residual. The SPV has set a passthrough rate coupon rate net of the servicerguarantee fee of for Tranche A for Tranche B and for Tranche Z What is tranche As outstanding principal balance at the end of the first month beginning of the s
Second month
QUESTION
Same setup as the previous question. What is the cash flow to the residual tranche in month
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
