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In Considering the Structure, the Rating Agencies Will Consider ________

Question 34

Multiple Choice

In considering the structure, the rating agencies will consider ________.


A) how losses will be allocated among the bond classes in the structure.
B) the prepayment allocation (i.e., the prepayment waterfall) .
C) the interest rate spread between the interest earned on the collateral and the interest paid to the bond classes minus the servicing fee.
D) the potential for a trigger event to occur that will cause a late amortization of a deal.

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