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NEW QUESTION: 1
Jonathan Weil, CFA, is the managing director of Weil Capital Management (WCM). Weil has decided to reevaluate the asset backed security (ABS) positions in his investors' portfolios since a recent, and severe, credit problem in the subprime lending industry has had ripple effects on other fixed-income markets. Weil expects the interest rate term structure to remain flat, but shift upward as credit terms tighten. Weil has asked one of his analysts, Vanessa Ordon, to assist him in analyzing potential ABS investments, including some products he is unfamiliar with.
Ordon provides an assessment of ABS backed by auto loans, credit card receivables, and closed end home equity loans. Ordon has assembled the following information on the collateral, credit enhancements, and prepayment risk associated with each type of ABS.

Ordon has also assembled the following information on the structure of a closed end home equity loan (HEL) asset backed security. Ordon has presented the security to Weil as a potential investment opportunity, but Weil is concerned about its default and prepayment risks. The HEL ABS does not have a shifting interest mechanism.

Ordon has also developed an assessment of mortgage backed securities (MBS). Ordon has assembled the following information related to a mortgage backed security.
Has Ordon correctly described the features of auto loan and credit card receivable backed ABS with respect to the securities' collateral?
A. Ordon is correct with regard to the auto loan ABS and the credit card receivable ABS.
B. Ordon is only correct with regard to the auto loan ABS.
C. Ordon is only correct with regard to the credit card receivable ABS.
Answer: C
Explanation:
Explanation/Reference:
Explanation:
Ordon is not corrccr with regard to auto loan ABS collateral. The collateral structure for ABS backed by amortizing assets (such as auto loans) generally does not change once the security is issued. The collateral simply gets smaller as the loans are paid off by the borrower. In contrast, the collateral structure for ABS backed by nonamortizing assets (such as credit card receivables) changes during the lockout period. During the lockout period, principal payments on the collateral are used to purchase additional collateral assets. This is known as a revolving structure. As part of the structure, a call provision, which causes cash flows to be directed at principal reduction rather than purchasing new collateral assets, is usually included. One such call provision is a cleanup call, which is triggered by a decline in the value of the collateral. Thus, Ordon is correct wirh regard to credit card receivable ABS collateral. (Study Session
15, LOS 56 c)

NEW QUESTION: 2

A. Option B
B. Option C
C. Option A
D. Option D
Answer: B,C

NEW QUESTION: 3

A. Option B
B. Option A
C. Option D
D. Option C
Answer: B
Explanation:
A media access control address (MAC address), also called a physical address, of a computer which is a unique identifier assigned to network interfaces for communications on the physical network segment. MAC addresses are used as a network address for most
IEEE 802 network technologies, including Ethernet and Wi-Fi.

NEW QUESTION: 4
What is a characteristic of MX7000 networking in Full Switch Mode?
A. Networking is available on MX9116n FSE and MX7116n FEM but not on the MX5108n.
B. Switches operate as layer 2 I/O aggregation devices and are managed through OME-M.
C. Networking is enabled by default and all switch-specific OS10EE capabilities are available.
D. Layer 2 bridging is disabled by default and interfaces must join a bridge domain (VLAN) before being able to forward frames.
Answer: C