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1)As with most publicly-issued fixed-rate bonds, CMBS bonds provide call protection for the benefit of the investors.
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1)    As with most publicly-issued fixed-rate bonds, CMBS bonds provide

call protection for the benefit of the investors. The difference between corporate bond call-protection and CMBS bond call protection is that in corporate bonds, the call protection is contained within the bond itself, while in CMBS, it is contained or embedded in _________________________.
 
2)    A common form of CMBS call protection is defeasance. Very briefly, what is defeasance? __________________________________________________________________________________________________________________________________________________.
 
3)    The main driver of gross profit in structured commercial mortgage finance is the monetizing of the arbitrage between the _____________________________ and the _________________________________________________. This monetization occurs through the creation and marketing of this arbitrage as a(n) _____________________bond.
 
In fixed rate CMBS securitizations, the most senior AAA tranches (Class A-1) always have a short average life - as little as three years - a period that is always less than even the shortest term loan in the collateral pool. How is that accomplished?

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Subject: Business, Finance

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