Explain whether you agree or disagree with the following statement: "The largest sector of the CMBS market is securities issued by agency and government-sponsored securities."

What will be an ideal response?


One would not agree with the statement. Although securities backed by Ginnie Mae and issued by the two government-sponsored enterprises constitute the largest sector of the RMBS market, it is the securities issued by private entities that are by far the largest sector of the CMBS market. Typically, agency and government-sponsored securities are less than 3% of the CMBS market.

Business

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Fill in the blank(s) with correct word

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