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LOS c: Distinguish between the payment structure and collateral structure of a securitization backed by amortizing assets and non-amortizing assets.
Q1. Which of the following is NOT a feature of an asset-backed security backed by non-amortizing assets?
A) The composition of the underlying loans does not change.
B) During a lockout period, principal payments are not distributed to the bondholders.
C) A call provision can be triggered when collateral reaches a certain level.
Q2. Which of the following statements regarding the structure of asset-backed securities (ABS) backed by amortizing assets is FALSE?
A) An example of this ABS is that backed by automobile loans.
B) A lockout period results in a revolving structure.
C) No new loans are added to the pool.
Q3. Suppose an investor did not want to be concerned with the risk of having to reinvest the early repayment of principal. What type of security should he invest in? A security backed by:
A) non-amortizing assets.
B) amortizing assets.
C) automobile loans. | 
发表于 2009-3-26 09:57
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