All categories

3 years ago

Check all true statements regarding CMBS:

Business

2 answers:

Stolb23 [73]3 years ago

5 0

Answer: A and D only

Explanation:

CMBS Loan are also referred to as a Conduit Loan, this is a type of real estate loan usually commercial, which is secured by a first-position mortgage on a commercial property. These loans are usually packaged, and sold by a Conduit Lender, commercial banks, investment banks, and syndicates of banks.

Loans in a CMBS are always bigger so they are less in a CMBS deal. Sometimes it’s onlyone loan in a Single Asset (SA) CMBS deal

Prepayments are discouraged in CMBS through defeasance,prepayment penalties or yield maintenance fees.

Goshia [24]3 years ago

3 0

Answer:

a.CMBS have less exposure to prepayment risk than RMBS

d. The number of commercial mortgages in a CMBS deal are usually lower than the number of residential mortgage in a RMBS deal

Explanation:

Commercial Mortgage-Backed Securities (CMBS) as the name implies are mortgage backed securities that are secured with commercial mortgages while Residential Mortgage-Backed Securities (RMBS) are mortgage backed securities secured by residential property.

a) CMBS are based on mortgages which usually have a fixed term contract in place meaning that prepayment is less of a thing with CMBS than with RMBS so the former does indeed have a less exposure to prepayment risk than the latter.

d) This is indeed true because both packages have to look appealing to investors but can only use different amounts to reach the minimum threshold. This is because Commercial Mortgages pay more than Residential Mortgages so more RMBS have to be pulled together to form an attractive investment as opposed to CMBS. This is why the number in CMBS are usually less than that of RMBS.

You might be interested in

You have just taken a job at a manufacturing company and have discovered that they use absorption costing to analyze product cos

poizon [28]

Answer and Explanation:

Respected Sir,

Sub: Absorption costing to analyze product costs and subsequent cost-volume-profit decisions

As per your requirement please find the explanation below:

Absorption costing is a process by which we add part of the fixed overhead to the production expense of the goods. If we do on a per-unit basis. Here we will compute by dividing the fixed costs by the number of units that we built and sold over the era. Whereas Variable costing includes fixed overhead as a lump sum instead of a per-unit price.

Under this process, all your variable costs like equipment, raw materials, and shipping are included. We will add the maximum fixed overhead costs for the duration. Such costs are not calculated on a per-unit basis. Rather than we deduct them as a lump-sum expense from your income amount.

Variable costing is really useful as it reveals the earnings after all the expenses are paid for the accounting period. While you would not have earned revenue for the goods we purchased as some may be in the inventory, we are showing you have paid all of your expenses for the time. We have excess revenue when you actually sell the finished goods in the warehouse.

The absorption approach is not all that effective as absorption costing will inflate the income figures excessively in any given span of accounting. Since you're not going to subtract any of your fixed costs as we did not sell any of us produced goods, our profit and loss report doesn't reflect the maximum expenses you've had for the time. Therefore, these results may mislead us when our profitability is analyzed.

Regards

ABC

7 0

3 years ago

Moe's Pizza Shop sells a large pizza for $12.00. Unit variable expenses total $8.00. The breakeven sales in units is 7,000 a

Nookie1986 [14]

Answer:

Margin of safety= $12,000

Explanation:

Giving the following information:

Moe's Pizza Shop sells a large pizza for $12.00. Unit variable expenses total $8.00. The breakeven sales in units are 7,000 and budgeted sales in units are 8,000

To calculate the margin of safety in dollars, we need to use the following formula:

Margin of safety= (current sales level - break-even point)

Margin of safety= (8,000*12) - (7,000*12)= $12,000

3 0

3 years ago

Oceans inc., a seafood distributor, agrees to buy from paul, a commercial fisherman, any "overstock" of fish that paul catches i

Ede4ka [16]

Oceans inc., a seafood distributor, agrees to buy from paul, a commercial fisherman, any "overstock" of fish that paul catches in excess of his legal limit. This agreement is most likely void.

the act of agreeing or of coming to a mutual association. the kingdom of being in accord. An arrangement is ordinary with the aid of all events to a transaction. An agreement or different record delineating such an association. The unanimity of opinion; harmony in feeling: settlement of some of the individuals of the school.

An agreement is a promise between entities to grow mutual obligations with the aid of regulation. segment 2(e) of the Indian contract Act, 1872 defines an agreement as 'each promise and each set of promises, forming the attention for every other, is an agreement.

The definition of agreement manner is the act of coming to a mutual selection, position, or arrangement. An instance of an agreement is the choice among two human beings to percentage the lease in an apartment.

Learn more about agreements here brainly.com/question/1835508

#SPJ4

8 0

2 years ago

JTM Ltd incurs costs of $16 per unit ($12 variable, $4 fixed) for a widget it sells for $22. JTM has received two special offers

Mademuasel [1]

Answer:

We must analyze the potential benefits of choosing one order or the other one:

Current JTM costs:

$12 variable per unit
$4 fixed per unit

If JTM accepts Firm A's order its fixed costs will not vary and it will be able to increase its profits by: ($17 - $12) x 10,000 = $50,000

Since JTM doesn't have the capacity to fulfill Firm B's order with their current cost structure, if it decides to take it, its variable or fixed costs (we don't know which) will probably increase, so its contribution margin will no longer be $5, as with Firm A's order, but will probably be lower. We are not told by how much the costs would increase.

The third alternative is to accept Firm B's offer and not sell 2,000 units through its normal distribution channels, but that would result in an increase in profits but also loss of normal profits:

($5 x 14,000 units) - ($6 x 2,000 units for the lost normal profits) = $70,000 - $12,000 = $58,000. If JTM is able to cancel the sale of 2,000 units, then Firm B's offer would increase its profits by $58,000, $8,000 more than Firm A's order, but it depends on its ability to cancel or not the normal sales.

3 0

3 years ago

Myers Corporation has the following data related to direct materials costs for November: actual cost for 4,650 pounds of materia

Nuetrik [128]

Answer:

Direct material price variance= $3,720 favorable

Explanation:

<u>To calculate the direct material price variance, we need to use the following formula:</u>

<u></u>

Direct material price variance= (standard price - actual price)*actual quantity

Actual cost= $5.4

Standard cost= $6.2

Actual quantity= 4,650

Direct material price variance= (6.2 - 5.4)*4,650

Direct material price variance=$3,720 favorable

3 0

3 years ago