Tranches - Study guides, Class notes & Summaries

Suppose that the Federal Reserve announces that it will sell a large amount of T-bills. This action will have ripple effects through the economy. What is the likely impact on the stock market? Decrease in the value of stocks - correct answer Decrease in the value of stocks Mortgage backed securities are often created with different tranches such as AAA, A, BBB. Which of the following statements is incorrect regarding the differences between these tranches...

The three branches of the science of behavior analysis are the -ANSWER experimental analysis of behavior, behaviorism, and Applied Behavior Analysis. Which of the following is a component of good teaching? Technical Fun Subjective Emotional -ANSWER Fun Who is commonly attributed for discovering the law of effect? -ANSWER Thorndike Who is commonly considered the father of behaviorism? -ANSWER Watson Which of the following is a dimension of ABA as outlined by Baer, Wolf, & Risley...

All of the following types of debt are typically "floating-rate" instruments used to finance an LBO EXCEPT: a. Subordinated Notes b. Term Loan A c. Term Loan B d. Revolver e. None of the above -ANSWER Explanation: The correct answer choice is A. All of the answer choices listed above with the exception of A are floating-rate debt instruments, meaning that its interest rate is not fixed (e.g. 8% each year until maturity) but rather tied to something like LIBOR (e.g. LIBOR + 3%)...

LBO Model Quiz Advanced Questions Correct 100%(rated A+) LBO Model Quiz Advanced Questions Correct 100%(rated A+) LBO Model Quiz Advanced Questions Correct 100%(rated A+) All of the following types of debt are typically "floating-rate" instruments used to finance an LBO EXCEPT: a. Subordinated Notes b. Term Loan A c. Term Loan B d. Revolver e. None of the above -ANSWER Explanation: The correct answer choice is A. All of the answer choices listed above with the exception...

LBO Model Quiz Advanced Questions With Solutions All of the following types of debt are typically "floating-rate" instruments used to finance an LBO EXCEPT: a. Subordinated Notes b. Term Loan A c. Term Loan B d. Revolver e. None of the above - ANS Explanation: The correct answer choice is A. All of the answer choices listed above with the exception of A are floating-rate debt instruments, meaning that its interest rate is not fixed (e.g. 8% each year until maturity) but rat...

LBO Model Quiz Advanced All of the following types of debt are typically "floating-rate" instruments used to finance an LBO EXCEPT: a. Subordinated Notes b. Term Loan A c. Term Loan B d. Revolver e. None of the above - ANSWER ️️ Explanation: The correct answer choice is A. All of the answer choices listed above with the exception of A are floating-rate debt instruments, meaning that its interest rate is not fixed (e.g. 8% each year until maturity) but rather tied to something li...

Primary economic role of structuring - Answer Structured securities complete the market - structured to meet all different needs & helps investors prepare for all states of the world MBS - Answer Mortgage-backed securities - security secured by pool of mortgages (mortgages are the collateral) RMBS - Agency RMBS - Answer Residential MBS - low credit risk: backed by the US government - has prepayment risk: borrower' s right to repay mortgage early a key risk Contraction risk - Ans...

1. How could you determine how much debt can be raised in an LBO and how many tranches there would be? Usually you would look at recent, similar LBOs and assess the debt terms and tranches that were used in each transaction. You could also look at companies in a similar size range and industry, see how much debt outstanding they have, and base your own numbers on those. 2. Let's say we're analyzing how much debt a company can take on, and what the terms of the debt should be. What are reasona...

All of the following types of debt are typically "floating-rate" instruments used to finance an LBO EXCEPT: a. Subordinated Notes b. Term Loan A c. Term Loan B d. Revolver e. None of the above -ANSWER Explanation: The correct answer choice is A. All of the answer choices listed above with the exception of A are floating-rate debt instruments, meaning that its interest rate is not fixed (e.g. 8% each year until maturity) but rather tied to something like LIBOR (e.g. LIBOR + 3%)...

Mortgage Backed Securities Final Exam | 2023/24 Why is prepayment less of an issue with commercial loans than it is with home mortgage loans? Explain Yield Maintenance & Defeasance prepayment restrictions. - 1) Commercial loans have strong call protections and penalties to the borrow if they prepay the loan. Home loans do not have prepayment penalties. Yield Maintenance Penalty - Present Value of lost payments will be paid to the lender to maintain their expected yield Defeasance - ...