Why is it not adequate to look at the weighted-average debt-to-service coverage ratio and weighted-average loan-to-value ratio for the pool of commercial mortgage loans in assessing the potential performance of a CMBS transaction?
What will be an ideal response?
For all properties backing a CMBS deal, a weighted-average DSC ratio and a weighted-average LTV is computed. However, these computations are not adequate in themselves because they do not consider the variation of possible outcomes that can occur. Thus, an analysis of the credit quality of a CMBS structure will also look at the dispersion of the DSC and LTV ratios for the underlying loans. For example, one might look at the percentage of a deal with a DSC ratio below a certain value.
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Indicate whether the statement is true or false
Describe the steps a writer might take when they have an audience who is skeptical or resistant to an idea
What will be an ideal response?
Ricardo borrowed $5,000 from his friend, Lorenzo. Ricardo signed a handwritten note stating, "I promise to pay $5,000 to Lorenzo on or before August 1, 2001, in return for the same amount borrowed from him on May 1, 2001." Under these circumstances, the note is ________.
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What were the reasons for the failure of ARS 1 and ARS 3?
What will be an ideal response?