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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) Ch20

a.

Default (or credit) risk

b.

Regulatory risk

c.

Interest rate risk

d.

Prepayment risk

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