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NEW QUESTION: 1
What are three advantages of using a Source Control system alongside a multi -sandbox development strategy?
Choose 3 answers
A. Create a branching strategy that tracks each feature or change separately
B. Keep a history of changes made by each developer
C. Act as a backup in case of catastrophic data loss
D. Perform code reviews before promoting to a pre -production sandbox
E. Automatically deploy changes from sandbox to production
Answer: A,B,E
NEW QUESTION: 2
You are developing an ASP.NET MVC application that provides instant messaging capabilities to customers.
You have the following requirements:
You need to design the application to meet the requirements.
What should you do?
A. Implement WebSockets protocol on the client and the server.
B. Implement long-running HTTP requests.
C. Configure polling from the browser.
D. Instantiate a MessageChannel object on the client.
Answer: D
NEW QUESTION: 3
What are the results of the out of the box integration between SAP Success Factors Employee Central and SAP S/4HANA Cloud for Professional Services? There are 3 correct answers to this question. Response:
A. Financial data, including company code and cost center is integrated
B. Employment data, including job title, department, and employment status, is integrated.
C. Performance management data, including performance review rating and feedback, is integrated.
D. Recruiting data, including interview assessments and feedback, is integrated.
E. SAP Success Factors Employee central becomes the core HR system of record in the cloud.
Answer: A,B,E
NEW QUESTION: 4
Wendall Wayne is a fixed income portfolio manager with Skyline Investments. Until recently he has focused almost exclusively on residential mortgage-backed securities (MBS). However, two weeks ago he was given approval to begin purchasing asset-backed securities (ABS) and commercial MBS as well.
Wayne has forecasted that interest rates will decrease by approximately 100 basis points over the next month.
Wayne first completes an analysis of two tranches (a PAC I tranche and a support tranche) from a collateralized mortgage obligation (CMO) that was issued 18 months ago. When the CMO was issued, the initial collar of the PAC I tranche was 150 - 400 PSA. He estimates the change in the average life of each tranche as the prepayment speed varies, assuming the prepayment speed stays at that speed until the tranche matures. The results are shown in Exhibit 1.
In his report, Wayne makes the following statements regarding the CMO:
Statement 1: The CMO is structured so that the support tranche has more extension risk, and the PAC I tranche has more contraction risk.
Statement 2: The cash flows of the PAC I tranche will be less affected by the change in interest rates I have forecast than the cash flows of the support tranche.
Wayne has pushed for approval to begin trading ABS because he is particularly interested in collateralized debt obligations (CDOs). However, he doesn't know a lot about them, so he first does some reading and prepares some key points related to CDOs to guide his analysis.
Statement 3: CDOs are typically collateralized by emerging market bond issues, home equity bank loans, and high-yield corporate bond issues.
Statement 4: One advantage of issuing a synthetic CDO versus a cash CDO is that credit risk is lower with a synthetic CDO because the junior note holders also sell a credit default swap.
Statement 5: Some CDOs include an equity tranche to provide payment and credit protection to the senior and mezzanine tranches, but for most issues, credit protection is provided by external credit enhancements.
Wayne wants to understand the distinction between amortizing and non-amortizing assets that are securitized by ABS transactions, as well as the appropriate spread measures to use for various types of fixed-income securities. He asks a colleague, Martin Freed, to explain to him the difference between the two and how the payment structure of the ABS is affected by whether the assets in the pool are amortizing or non-amortizing. Freed replies:
Statement 6: An auto loan is an example of an amortizing asset, and a credit card receivable is an example of a non-amortizing asset.
Statement 7: For amortizing assets, the composition of the loans in the asset pool doesn't change once the assets are securitized. For non-amortizing assets, the composition of the asset pool does change.
Freed also tells Wayne that the credit analysis of commercial mortgage-backed securities (CMBS) should focus on the credit risk of the property, not the borrower. Freed also says that two key ratios useful for assessing the credit risk of the property are the debt service coverage ratio (net operating income/debt service) and the loan-to-value ratio (current mortgage amount/current appraised value). Wayne concludes that both of the ratios Freed recommends for credit analysis of CMBS are positively related to credit risk:
the higher the ratio, the more risky the loan.
Finally, Wayne is trying to determine the most appropriate spread measure for valuing callable corporate bonds and high-quality home equity loan ABS. He plans to choose from the following measures: the zero- volatility spread, the OAS from the binomial model, and the OAS from the Monte Carlo model.
How many of Wayne's observations related to CDOs (Statement 3, Statement 4, and Statement 5) are correct?
A. Two.
B. None.
C. One.
Answer: B
Explanation:
Explanation/Reference:
Explanation:
None of the three statements is correct.
Statement 3 is incorrect because CDOs are not typically collateralized by home equity bank loans.
Statement 4 is incorrect because the credit risk of the two structures is the same. The difference is that with synthetic CDOs, the bondholders take on the risks of the underlying assets but do not take legal ownership of them.
Statement 5 is incorrect because all CDOs include an equity tranche to reduce the prepayment and credit risk of the senior and mezzanine tranches. (Study Session 15, LOS 56.g)