u/Deablo482

I understand why I got the answer wrong. However, I wanted to ask about C. According to the feedback, the impairment loss is a non-cash item, but if we expense it, do we not get a tax gain, like depreciation, which increases our cfo?

https://preview.redd.it/ylg0gx1jho0h1.png?width=1808&format=png&auto=webp&s=d95cb9de712d8c786e920156306ed601d1c14968

Hey everyone!

I was going through RMBS vs CMBS in my CFA prep and had a question I’m hoping someone can help clarify.

According to the curriculum, CMBS have both individual and structural call protection, which means that RMBS does not have such an option available. So, my question is:

1. Does RMBS have credit tranches?

Thank you!!!!