Give two reasons why a CMO tranche is a path-dependent cash flow security
What will be an ideal response?
Pools of pass-throughs are used as collateral for the creation of collateralized mortgage obligations (CMOs). Consequently, for CMOs there are typically two sources of path dependency in a CMO tranche's cash flows. First, the collateral prepayments are path dependent. Second, the cash flow to be received in the current month by a CMO tranche depends on the outstanding balances of the other tranches in the deal. Thus we need the history of prepayments to calculate these balances.
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Prestige Pegasus is a multinational firm that specializes in the manufacturing of hardware for high-end technical products and sells its products mostly through business-to-business interactions
Following a good year with soaring profit-margins, Prestige Pegasus is planning to conduct an internal assessment throughout the organization. In a meeting following the decision to conduct the internal assessment, Douglas McCarthy (the Chief Operations Officer) and Tom Castleback (the Chief Marketing Officer) are the prime contributors on the methods that the organization should use to perform these assessments. Douglas: "We should encourage 360-degree feedback, mostly concentrating on subordinates, as they would be the right people to judge their superiors." Tom: "We should definitely use 360-degree feedback, mostly from external customers, as they are the ones who matter in the end." Which of the following statements, if true, would support Douglas' argument? A) The company lacks a feedback mechanism that guarantees employee anonymity and protects their interests. B) The company is focusing on the recruitment for middle-management positions which mostly emphasizes on people management skills. C) The company is planning to flatten its organizational structure by combining certain top management positions, while removing redundant ones. D) The company is introducing workforce diversity initiatives in order to comply with certain affirmative action policies.
The process by which two or more parties who have different preferences must make a joint decision and come to an agreement is ________
A) negotiation B) accommodation C) conflict resolution D) collaboration E) compromise