Question
CMBS (Commercial Mortgage Backed Security) issues are often tranched into separate classes. This is done primarily to shift (or stratify) what kind of risk? (Hint:
CMBS (Commercial Mortgage Backed Security) issues are often "tranched" into separate classes. This is done primarily to shift (or stratify) what kind of risk? (Hint: This is different for Commercial and Residential MBSs)
| a. | Interest rate risk | |
| b. | Default (or credit) risk | |
| c. | Regulatory risk | |
| d. | Prepayment risk |
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Quantitative Analysis for Management
Authors: Barry Render, Ralph M. Stair, Michael E. Hanna, Trevor S. Ha
12th edition
133507335, 978-0133507331
