CMO tranches every, think, support, highest, correct

hardwork24

Did every one get the correct answer? I think the support tranche has the highest prepayment risk... I missed out on this one.

Matori

Doji Wrote:
-------------------------------------------------------
> I don't remember to have seen this question at
> all. However, I do remember a question of
> prepayment risk between a CMO, Passtrough
> securities and "I don't remember...".


I don't remember this one at all either!! Do they have different sets of questions for different people? I remember the Passthrough securities one.

chetan86

ozzie123 Wrote:
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> Seriously, it's already more than a week and you
> guys still remember the question? Astounding.


I know, so much of the test is out of my memory right now.

I picked support tranche as a guess, as I only remembered the 'tranche A' and 'tranche B' context. Looks like it's wrong, so oh well.

RobertA

Seriously, it's already more than a week and you guys still remember the question? Astounding.

disiz64

I don't remember to have seen this question at all. However, I do remember a question of prepayment risk between a CMO, Passtrough securities and "I don't remember...".

shootingstar

it was asking for the lowest, and it had tranche b in the answer

btcapital

I do not think they gave tranch 'a' and tranch 'b'...I think I am sure on that...otherwise I would have got this correct...

I think choice 'C' - was Support tranche.... and the other option was, amortizing tranche or something like that...

(I did not read that last paragraph in the book..hence I missed it :=( )

RobertA

Pretty sure I said Tranche B I hope. So, if only 2 Tranches are given:

Tranche A-> Highest Prepayment Risk

Tranche B-> Lowest Prepayment Risk

Is that right?

I don't see PACs and Support tranches thoroughly described in the text, the CFAI text says we will learn much more about them in Level II

invic

definately tranche b of the cmo

sgupta0827

Got another wrong.