In a commercial mortgage-backed security, why is balloon risk referred to as extension risk?

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The Theory And Practice Of Investment Management

ISBN: 9780470929902

2nd Edition

Authors: Frank J Fabozzi, Harry M Markowitz

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Question Posted: Dec 19, 2023 01:35 AM

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In a commercial mortgage-backed security, why is balloon risk referred to as extension risk?

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In the context of commercial mortgagebacked securities CMBS balloon risk is often referred to as extension risk This terminology is used to describe t...View the full answer

The Theory And Practice Of Investment Management

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