These Are Securities Whose Underlying Assets Consist of Commercial Mortgage

question 217

Multiple Choice

These are securities whose underlying assets consist of commercial mortgage loans. The commercial loans are pooled, which brings diversification and liquidity to the asset class. What are these?

• A) Conventional securities
• B) CMBS
• C) Subordinated securities
• D) Securitization

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Definitions:

Payoffs

The returns or outcomes received from a particular action or investment, often discussed in game theory and economics.

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Different courses of action or strategies that a decision-maker can choose from in a decision-making process.

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The likelihoods of different possible outcomes or states in a probabilistic model, often used in decision making and forecasts.

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