Please use the chart below to answer questions:

A special purpose entity has issued the followed structure for a CMBS transaction:

A) At what level of loss would Class B experience a loss? a) $25MM b) $26MM c) $75MM __________

B) The creation of a bond classes with a waterfall structure for sharing losses is referred to as: a) Credit Tranching b) Time Tranching c) Excess Reserves __________

C) How would this structure above best be described? a) A pool of conforming mortgages as collateral. b) Senior/Subordinated Structure. c) All classes are guaranteed by a government-sponsored enterprise (GSE).

A special purpose entity has issued the followed structure for a CMBS transaction: Credit Rating AAA Bond Class Class A Class B Class C Total Par Value $150,000,000 $50,000,000 $25,000,000 $225,000,000 AA A