With respect to the mitigation of balloon risk, what is meant by an external tail?
What will be an ideal response?
The external tailis the second of two types of structural provisions that can be present in CMBS transactions to mitigate balloon risk. With an external tail, the maturity date for the CMBS issue is set to be longer than the balloon payment for the pool of commercial mortgage loans. Because this gives the borrower the time to arrange refinancing while avoiding default on the bond obligations, it is the method preferred by rating agencies.
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Fixed costs that change for activity outside the relevant range would include
A) depreciation. B) electricity costs. C) production supplies costs. D) raw materials costs.
Identify its drawbacks?
What will be an ideal response?
When used appropriately, which power can motivate, but if used unethically or distributed based on favoritism, it can lead to demoralization and apathy?
a. Reward power b. Legitimate power c. Referent power d. Coercive power
The two principal types of municipal bonds are:?
A. ?general obligation bonds and income bonds. B. ?income bonds and putable bonds. C. ?revenue bonds and general obligation bonds. D. ?floating-rate bonds and indexed bonds. E. ?floating-rate bonds and revenue bonds.