In Considering the Structure, the Rating Agencies Will Consider ________

question 34

Multiple Choice

In considering the structure, the rating agencies will consider ________.

• A) how losses will be allocated among the bond classes in the structure.
• B) the prepayment allocation (i.e., the prepayment waterfall).
• C) the interest rate spread between the interest earned on the collateral and the interest paid to the bond classes minus the servicing fee.
• D) the potential for a trigger event to occur that will cause a late amortization of a deal.

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Definitions:

Cerebellum

A part of the brain located at the back of the skull, primarily responsible for coordinating and regulating muscular activity.

Sensory Distortions

Alterations in the perception of sensory input, often experienced as part of psychological disorders or in response to certain drugs.

Hallucinogen

A substance that induces alterations in perception, thinking, and feeling, leading to hallucinations that are not real.

Stimulant

A substance that increases physiological or nervous activity in the body.