AIWMI Exam CCRA-L2 Topic 7 Question 104 Discussion

Actual exam question for AIWMI's CCRA-L2 exam

Question #: 104
Topic #: 7

Statement 1: The Yields on the MBS PTCs are normally higher than the yields on the corporate bonds of similar ratings.

Statement 2: The reason for difference in yields on the corporate bonds and similarly rated PTCs is on account of the optionality in the PTC, the unfamiliarity of the structure and uncertainties in respect of legal and structural issues.

Which of the above statements is correct?

ANone of the statements

BBoth the statements

COnly Statement 2 is correct

DOnly Statement 1 is correct

Show Suggested Answer

Suggested Answer: D

by Judy at Dec 10, 2024, 03:31 PM

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Bulah

1 months ago

Both statements make sense, but I think Statement 2 provides a more comprehensive explanation. That's my take on it.

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Alfreda

1 months ago

Wait, are we talking about bonds or barbecues? I'm just craving some grilled MBS PTC right now...

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Dexter

6 days ago

C) Only Statement 2 is correct

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Eveline

22 days ago

B) Both the statements

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Arletta

24 days ago

A) None of the statements

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Hassie

2 months ago

The optionality and legal uncertainties make a big difference. That's why Statement 2 is the correct answer in my opinion.

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Roslyn

29 days ago

Yes, Statement 2 makes sense given the complexities involved in PTCs compared to corporate bonds.

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Francisca

1 months ago

I think Statement 2 is the correct answer because of those reasons.

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Timothy

1 months ago

I agree, the optionality and legal uncertainties definitely play a role in the difference in yields.

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Hayley

2 months ago

I think Statement 1 is correct because of the higher yields on MBS PTCs.

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Jovita

2 months ago

I agree with Melvin, Statement 2 makes more sense.

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Melvin

2 months ago

I disagree, I believe only Statement 2 is correct.

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Ernie

2 months ago

The yields on MBS PTCs are definitely higher than corporate bonds, no doubt about that. I agree with Statement 1 all the way.

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Willie

1 months ago

I agree with you, the yields on MBS PTCs are definitely higher than corporate bonds.

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Barabara

2 months ago

I'm not sure, but I believe Statement 2 is correct.

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Antonio

2 months ago

I disagree, only Statement 1 is correct.

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Arthur

2 months ago

I think both statements are correct.

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Page

3 months ago

I think both statements are correct.

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