Caia level 1 topic 6 - Study guides, Class notes & Summaries

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 - ANSWER-Av...

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...

6 types of private equity - Answer-Equity PE - venture capital - buyouts - merchant banking Debt PE - mezzanine debt (debt / equity hybrid for middle market companies) - distressed debt - leveraged loans (noninvestment grade LIBOR + 1.25% Criteria for distressed debt - Answer-Equal to CCC / Caa or lower Yielding 10% more than the risk-freer rate Market price less than 50% par 4 Types of covenants - Answer-Positive Negative Incurrence Maintenance Business Development Companie...

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...

IMCA - The Investment Advisor Body of Knowledge + Test Bank_ Readings for the CIMA Certification (2015, Wiley) The Investment Advisor Body of Knowledge Readings for the CIMA® Certification IMCA® INVESTMENT MANAGEMENT CONSULTANTS ASSOCIATION Cover image: © iS / TarapongS Cover design: Wiley Copyright © 2015 by Investment Management Consultants Association. All rights reserved. Published by John Wiley & Sons, Inc., Hoboken, New Jersey. Published simultaneously in Canada. Excerpts ...