This preview shows pages 1–2. Sign up to view the full content.
This preview has intentionally blurred sections. Sign up to view the full version.View Full Document
Unformatted text preview: Commercial Mortgage-Backed Securities (continued) o Differences Between CMBS lind Nonagency RMBS Structuring o The structure of a CMBS transaction is the SlIJT1C lISin a nonagency RMBS in that most structures have multiple bond classes (trenches) with different ratings. and there are rules for the distnbution ofinterest and principal. to the bond classes. o The three major differences due to the features ofrhe underlying loans MO the prepaymentterms for commercial mortgages differ significantly from residential mortgages ii. the significant difference between commercial and residential mortgages with respect 10 the role of the servicer when there is a default iii. the role of the buyers when tbe structure is being created so as to remove certain loans from the pool C""'''i,':!'1'l1n".,..""~..,,,......,. ~F'l""=",,,,~,,,,;,*,",,"", Commercial Mortgage-Backed Securities (continued) o Differences Between CMBS and Nonagency RMBS Structuring o Thefirsl difference in structuring...
View Full Document
- Fall '11