Tranches - Study guides, Class notes & Summaries

LBO MODELING EXAM QUESTIONS AND ANSWERS WITH COMPLETE SOLUTIONS VERIFIED GRADED A++ Sources for LBO (Total of 5, Answer up to 3) 1.) Cash (or potentially excludes minimum cash) 2.) Proceeds from option exercised 3.) Tranches of capital structure (secured, unsecured, convertible preferred, hybrid) 4.) Sponsor Equity 5.) Revolver, but is normally not part of sources. It typically provides liquidity if there are working capital needs or needs for cash (read the language carefully to see if ...

What is a Mortgage Backed Security - Answer-People in need of loans go to commercial bank for money/loan; commercial bank sells loans to IB for amount loaned out in return for rights of interest payments on loans; IB creates separate entity and issues shares (MBS) at a certain price to make a margin on their original payment to the commercial bank What is a Collateralized Debt Obligation (CDO) - Answer-IBs split mortgages into tranches (senior, mezzanine, equity) from least risky to most ri...

LBO MODEL - ADVANCED EXAM QUESTIONS AND ANSWERS WITH COMPLETE SOLUTIONS VERIFIED LATEST UPDATE Tell me about all the different kinds of debt you could use in an LBO and the differences between everything. See figure on p155 How would an asset write-up or write-down affect an LBO model? / Walk me through how you adjust the Balance Sheet in an LBO model. All of this is very similar to what you would see in a merger model - you calculate Goodwill, Other Intangibles, and the rest of the write-...

LBO Model – Advanced Exam Questions and Answers How would an asset write-up or write-down affect an LBO model? / Walk me through how you adjust the Balance Sheet in an LBO model. - ANSWER ️️ All of this is very similar to what you would see in a merger model - you calculate Goodwill, Other Intangibles, and the rest of the write-ups in the same way, and then the Balance Sheet adjustments (e.g. subtracting cash, adding in capitalized financing fees, writing up assets, wiping out goodwi...

Mortgage Backed Securities Final Exam | GRADE A+ with complete solution 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...

CLF Exam Review Questions and answers, graded A+/ syndicated loan - -A commercial loan provided by a group of lenders and structured, arranged, and administered by one or several commercial or investment banks known as arrangers - less expensive and more efficient to administer than traditional bilateral, or individual credit lines Leveraged Borrowers - --Issuers who are paying spreads (premium above LIBOR or another base rate) sufficient to attract nonbank term loan investors ; Typically...

LBO Model – Advanced Exam Questions and Answers Tell me about all the different kinds of debt you could use in an LBO and the differences between everything. - ANSWER ️️ See figure on p155 How would an asset write-up or write-down affect an LBO model? / Walk me through how you adjust the Balance Sheet in an LBO model. - ANSWER ️️ All of this is very similar to what you would see in a merger model - you calculate Goodwill, Other Intangibles, and the rest of the write-ups in the sa...

Real Estate Finance Chapter 4 QuizAn investment is said to be liquid when: - correct answer it can be instantly sold. Private mortgage insurance is required on all loans that exceed what percentage of the value of a property? - correct answer 80%. FNMA and FHLMC are: - correct answer government-chartered private lenders. Participants who make up the secondary mortgage market: - correct answer raise the necessary funds to purchase the mortgage. When an investor has an "undivided inte...

LBO Model – Advanced Exam Questions and Answers Tell me about all the different kinds of debt you could use in an LBO and the differences between everything. - ANSWER ️️ See figure on p155 How would an asset write-up or write-down affect an LBO model? / Walk me through how you adjust the Balance Sheet in an LBO model. - ANSWER ️️ All of this is very similar to what you would see in a merger model - you calculate Goodwill, Other Intangibles, and the rest of the write-ups in the sa...

LBO Model – Advanced Exam Questions and Answers How would an asset write-up or write-down affect an LBO model? / Walk me through how you adjust the Balance Sheet in an LBO model. - ANSWER ️️ All of this is very similar to what you would see in a merger model - you calculate Goodwill, Other Intangibles, and the rest of the write-ups in the same way, and then the Balance Sheet adjustments (e.g. subtracting cash, adding in capitalized financing fees, writing up assets, wiping out goodwi...