Which of the following describes the waterfall typically used for mortgages pre-crisis?
A. A distribution of cash flows to tranches with priority given to tranche with the highest rating
B. A distribution of cash flows to tranches in proportion to their outstanding principals
C. A distribution of losses to tranches so that tranches bear losses in proportion to their outstanding principals
D. None of the above
A
The effect of the waterfall was usually that repayments went first to the most senior (highest rated) tranche, then to the next-most-senior tranche, and so on
You might also like to view...
The members of a customs union agree to the establishment of individual external trade barriers
Indicate whether the statement is true or false
Acme Global hired a director of safety to help the organization ensure compliance with the Occupational Safety and Health Act. This represents the influence of ______ in the external environment on the organization.
A. the economy B. customers C. the government D. suppliers
A franchise in which the franchisee sells products it manufactures from a formula or from ingredients provided by the franchisor is called a ________
A. distributorship B. chain-style business C. processing plant franchise D. business format franchise
The causal process of thinking:
A. starts with what one has and selects among possible outcomes. B. starts with a desired outcome and focuses on the possible means to generate that outcome. C. involves bricolage. D. starts with brainstorming by meeting with industry professionals.