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________ Is Basically the Interest from the Collateral That Is

Question 7

Multiple Choice

________ is basically the interest from the collateral that is not being used to satisfy the liabilities (i.e., the interest payments to the tranches in the structure) and the fees (such as mortgage servicing and administrative fees) .


A) Excess spread
B) Overcollateralization
C) Monoline insurance
D) Senior-subordinate structure

Correct Answer:

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