What is the concern with the inclusion of fixed-rate mortgage loans in the collateral pool when the liabilities are floating rate?

What will be an ideal response?


The inclusion of fixed-rate mortgage loans in the collateral pool locks in fixed rate payments. If these payments become high when floating rates fall, then problems can result in making payments especially to the subordinate bond classes.

Business

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The ability to communicate effectively is the second most important skill for a sales career behind financial shrewdness.

Answer the following statement true (T) or false (F)

Business

______ can come from explicit statements made by the organization or a group’s members, critical incidents in the group’s history, an early behavior that emerges and persists, and from other previous group situations.

A. Status relationships B. Group norms C. Role expectations D. Task performance

Business

Show that you care about the reader by telling them how you are willing to change policy to help them

Indicate whether the statement is true or false

Business

Recent tax changes for pass through businesses such as proprietorships, S-Corps, LLC's, and partnerships are permanent changes to the tax structure. 

Answer the following statement true (T) or false (F)

Business