Refers to the securitization transaction

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The following question refers to the securitization transaction “CMLTI 2006-NC2” which is discussed in the FCIC report and in the FCIC resource library.

The AAA rated portion of the CMLTI 2006-NC2 transaction was only 23% of the total. The remaining 77% was rated BB- by Standard & Poor’s.

True or False? Why?

The following question refers to the securitization transaction “CMLTI 2006-NC2” which is discussed in the FCIC report and in the FCIC resource library.

Tranche A2-A had a lower yield than tranche M-1.

True or False? Why?

The following question refers to the securitization transaction “CMLTI 2006-NC2” which is discussed in the FCIC report and in the FCIC resource library.

CDOs invested only in the safe “A” rated tranches of the transaction.

True or False? Why? 

Reference no: EM13947007

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