Please fill in the blanks:

1)As a generalization, investment grade bonds of fixed-rate CMBS deals are priced at a spread over rates, while the non-investment grade bonds are priced at a spread over rates.

2)As we have observed recently in what has been labeled "tranche warfare", defaulted loans resolved by the Special Servicers through an extension of the original maturity date will negatively impact the marked-to-market value of thetranches.

3)Beginning in 2004 and 2005, in order to address the concerns and fears of AAA investors that subordination levels of these bonds were becoming too small, issuers of CMBS bonds dealt with these concerns by

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4)As loans originated for securitization became larger, and because investors avoid the concentration of risk inherent in single-asset securitizations, issuers dealt with investor concerns by segmenting these large loans into notes.

5)As with most publicly-issued fixed-rate bonds, CMBS bonds provide call protection for the benefit of the investors. The difference between corporate bond call-protection and CMBS bond call protection is that in corporate bonds, the call protection is contained within the bond itself, while in CMBS, it is contained or embedded in .

6)A common form of CMBS call protection is defeasance.Very briefly, what is defeasance?

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7)The main driver of gross profit in structured commercial mortgage finance is the monetizing of the arbitrage between theand the

.This monetization occurs through the creation and marketing of this arbitrage as a(n) bond.

8)In fixed rate CMBS securitizations, the most senior AAA tranches (Class A-1) always have a short average life - as little as three years - a period that is always less than even the shortest term loan in the collateral pool.How is that accomplished?

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9)Many regulated institutional investors are required to invest only in debt instruments that are given certain levels of quality as determined by an NRSRO. NRSRO stands for

NR S R O . The NRSRO designation is granted by what government entity?

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10)CMBS B-piece buyers were, from 2005-2007, able to greatly reduce or completely eliminate their risk exposure that they held as owners of first-loss / subordinate bonds. How did they dothis?

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11)In almost every CMBS securitization, there are a small number of ARD loans. Upon the ARD, hyperamortization and an increase of the interest rate become effective, yet they are requested by and are intended to be beneficial to the borrowers. In what way are these ARDs beneficial to the borrowers?

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12)In the fall of 2009, REMIC rules were modified with the intent of easing the resolution of securitized loans that were likely to become delinquent in the future. Observing most of the loans recently assigned to Special Servicers, we are seeing this modification being implemented.What is the modification?

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