What is an isolated system?
An isolated system is one in which energy or matter does not cross the boundary of the system. This means that no energy or matter is gained or lost from the system, so the system is “isolated” from its environment.
What is the CMBS securitization process?
The CMBS securitization process is a method used by a lender to bundle mortgage loans into a security and market them to investors. It is a complex process that begins with the lender marketing and selling the loan portfolios to an underwriter, who then packages them into securities and sells them to investors. The investors then use these securities to purchase the underlying mortgages, which are then serviced by a special servicer. The income generated from these mortgages is used to pay the investors their principal and interest payments. This process effectively reduces the lender’s risk in the event that any of their borrowers default on their mortgages, as investors shoulder the risk of repayment.
What is the difference between a phone and a Garmin?
A phone is a device used for communication purposes and can be used to make calls, send messages and access the internet. A Garmin is a GPS device for tracking, recording and navigating activities. It uses GPS to provide accurate information about your location and to provide directions.
Why is exposure important in finance?
Exposure in finance refers to a person or firm's level of risk associated with a particular asset or set of assets. Risks associated with exposure include the potential for losses due to changes in market conditions, such as fluctuations in currency politics and rate, and fluctuations in the prices of commodities and stocks. By having exposure to a wide range of assets, investors and firms are able to mitigate the risk associated with each individual asset. This helps to maximize the returns on investment while reducing the risk profile of the portfolio overall.