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.

shootingstar

Support tranch has the highest, it was asking for the lowest though right?

johnnyBuz

yes..the lowest was PAC...

sgupta0827

Got another wrong.

invic

definately tranche b of the cmo

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

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 :=( )

shootingstar

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

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...".

RobertA

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