How do 'Agency RMBS' differ from 'GSE RMBS' in terms of government backing?
Explanation
GNMA is explicit government backing; GSEs are government-sponsored.
Other questions
Which of the following best describes the primary role of a Special Purpose Entity (SPE) in a securitization transaction?
In the context of Covered Bonds, what is meant by 'dual recourse'?
Which feature distinguishes a 'Hard-bullet' covered bond from a 'Soft-bullet' covered bond?
Which of the following is an internal credit enhancement that involves the allocation of losses to junior bond classes before senior classes?
In a securitization with a 'waterfall' structure, which tranche is typically referred to as the 'equity' tranche?
Which statement accurately describes 'Excess Spread' in the context of credit enhancement?
What is a primary characteristic of a Credit Card Receivable ABS that distinguishes it from an Auto Loan ABS?
In a Solar ABS transaction, what generally happens during the 'Pre-funding period'?
Which of the following is considered a 'Non-Agency RMBS'?
What is 'Contraction Risk' in the context of Mortgage-Backed Securities?
In a Sequential-Pay CMO structure, how are principal payments distributed?
What is the primary purpose of a Planned Amortization Class (PAC) tranche in a CMO?
Which of the following describes a 'Z-tranche' in a CMO structure?
How does 'Defeasance' function as a call protection mechanism in CMBS?
What is 'Balloon Risk' in a commercial mortgage?
Which ratio is calculated as Net Operating Income (NOI) divided by Debt Service?
What is a 'Collateralized Loan Obligation' (CLO) primarily backed by?
In a CDO structure, what is the role of the 'Collateral Manager'?
Which of the following is true regarding 'Principal-Only (PO)' securities?
What happens in a 'Soft-bullet' covered bond if payments are not made on the scheduled maturity date?
Which party in a securitization transaction safeguards the assets and holds funds due to ABS holders?
What is 'Overcollateralization'?
Which of the following describes 'Interest-Only (IO)' securities?
What is the result of a 'prepayment lockout' in a CMBS?
Which mechanism allows solar ABS investors to be protected against losses?
What is 'Strategic Default' in the context of residential mortgages?
What is the 'pass-through rate' of a mortgage pass-through security?
In a CDO, if the 'Overcollateralization Test' is failed, what happens?
What is 'Extension Risk'?
Which of the following is true regarding 'revolving periods' in Non-Mortgage ABS?
What defines a 'recourse loan'?
What is the primary collateral for a 'Structured Finance CDO'?
Which of the following describes 'Time Tranching' in a CMO?
What is the key benefit of 'Green Covered Bonds'?
Which factor creates 'Negative Convexity' in callable bonds and MBS?
What is 'Credit Tranching'?
Why might a borrower 'strategically default' on a non-recourse loan?
Which CMBS protection mechanism involves paying a fee to compensate lenders for lost interest?
What is the 'Ramp-up period' in a CLO?
Which of the following is true regarding 'Floating-Rate tranches' in CMOs?
Which feature is unique to a 'Conditional Pass-Through Covered Bond' compared to a Hard-Bullet bond?
What role does the 'Servicer' play in a securitization?
Which of the following is an example of 'External Credit Enhancement'?
What is the 'lockout period' in a Credit Card ABS?
Why do CMBS trade more like corporate bonds than RMBS?
Which tranche in a CMO structure is most exposed to 'Contraction Risk'?
What is the primary function of a 'Support Tranche' in a PAC CMO structure?
In the context of CDOs, what is 'Arbitrage'?
Which risk is specifically associated with the 'Workout period' in a commercial mortgage?