nerdexam
SOFE

AFE · Question #174

These are securities whose underlying assets consist of commercial mortgage loans. The commercial loans are pooled, which brings diversification and liquidity to the asset class. What are these?

The correct answer is B. CMBS. See the full explanation below for the reasoning.

Question

These are securities whose underlying assets consist of commercial mortgage loans. The commercial loans are pooled, which brings diversification and liquidity to the asset class. What are these?

Options

  • AConventional securities
  • BCMBS
  • CSubordinated securities
  • DSecuritization

How the community answered

(42 responses)
  • A
    5% (2)
  • B
    74% (31)
  • C
    14% (6)
  • D
    7% (3)

Community Discussion

No community discussion yet for this question.

Full AFE Practice