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In: Finance

The addition of a future funding to an existing CRE CLO is intended to increase the...

The addition of a future funding to an existing CRE CLO is intended to increase the average life of the deal

True

False

The addition of a future funding to an existing CRE CLO is intended to maintain the average life of the deal

True

False

The addition of a future funding to an existing CRE CLO is intended to decrease the average life of the deal

True

False

Solutions

Expert Solution

1.The addition of a future funding to an existing CRE CLO is intended to increase the average life of the deal yes is true because CLO is collateralized loan obligation , so here the loan is taken on the basis of keeping some collateral thatswhy it a safe loan.

By adding fund to the existing CLO makes it easier to give more loans to indivisual and industries and hence where there is more loan there is a chance of increaseing the average life of the deal.

2.The addition of a future funding to an existing CRE CLO is intended to maintain the average life of the deal, it is true because as it a safe loan so average life will be maintained.

The addition of a future funding to an existing CRE CLO is intended to decrease the average life of the deal it is false because as it is a safe loan so average life will be increase and maintain but it will never decrease as more indivisul and company will take more loan so the the loan amount will be graeater and the life of loan that means the time period will increase.

jeff jeffy answered 2 years ago
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