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:

Verified
Correct Answer:
Verified
Q2: _ is created by redistributing the cash
Q3: What does the creation of a CMO
Q4: The creation of a CMO _.<br>A) can
Q5: Which of the below statements is FALSE?<br>A)
Q6: A _ security divides the cash flow
Q8: What does PSA stand for? How is
Q9: What is an IO?
Q10: In terms of market size, the agency
Q11: In regards to the conditional prepayment rate
Q12: Market participants often classify subprime mortgage-backed securities