Cdo tranches - Study guides, Class notes & Summaries

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...

RSK 4802 EXAM PACK 2022 JANUARY /FEBRUARY 2016 QUESTION1.1 ai) Risk management is an important process because it empowers a business with the necessary tools so that it can adequately identify and deal with potential risks. Once a risk has been identified, it is then easy to mitigate it. In addition, risk management provides a business with a basis upon which it can undertake sound decision-making. -For a business, assessment and management of risks is the best way to prepare for even...

RSK4802 EXAM PACK 2022. Financial institutions, particularly banks are a critical component of any economy√. They provide financing for commercial enterprises, basic financial services to the population at large and provide access to payment systems. The importance of banks to national economies is demonstrated by the fact that banking is virtually universally a regulated industry and that banks have some recourse to government particularly √ through the Central banks. It is therefore o...

Thoroughly describes asset and mortgage backed securities with graphs, diagrams, and charts