A Tranche That Has a Coupon Interest Rate That Adjusts

question 8

Multiple Choice

A tranche that has a coupon interest rate that adjusts in the opposite direction to its index is referred to as:

• A)Reverse floater tranche
• B)Inverse floater tranche
• C)Upside-down floater tranche
• D)Backwards floater tranche

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Definitions:

Labor Shortage

A situation where the demand for workers exceeds the supply within a particular industry or overall economy.

Revocability

The characteristic of being able to cancel, withdraw, or annul something previously granted or decided.

Outsourcing

The business practice of hiring a party outside a company to perform services or create goods that traditionally were performed in-house.

Core Competency

A set of knowledges and skills that make the organization superior to competitors and create value for customers.