Study Session 16 - Cross-Reference to CFA Institute Assigned Reading #46 - Introductio to Asset-Backed Securities Flashcards
0
Q
Extension risk
A
the risk that prepayment will be slower than expected
1
Q
Prepayment
A
A partial or full repayment of principal in excess of the scheduled principal repayment required by the mortgage
2
Q
contraction risk
A
the risk that prepayment will be more rapid
3
Q
The issuer of asset-backed securities is best described as the
A
SPV
4
Q
Balloon risk
A
is the possibility that a commercial mortgage borrower will not be able to refinance the proncipal that is due at the maturity date of the mortgage
