Appraisal subordination entitlement reduction
Encyclopedia
Appraisal Subordination Entitlement Reduction (ASER) or Collateral Valuation Adjustments
(CVA
) are CMBS structuring innovations desined to improve overall transaction credit quality. Appraisal Reductions were created in response to rating agency concerns that, without such an adjustment, cash flow from mortgages likely to default would be paid to the first-loss class. The rationale behind appraisal reductions is to support proactively the credit rating of senior CMBS tranches by reducing cash-flow payments to the subordinate tranches.
Collateral Valuation Adjustments
Collateral valuation adjustment or appraisal subordination entitlement reduction are CMBS structuring innovations designed to improve overall transaction credit quality. Collateral valuation adjustments were created in response to rating agency concerns that, without such an adjustment, cash...
(CVA
CVA
The abbreviation CVA can refer to:Schools* Carrabassett Valley Academy, a ski and snowboard academy based in Carrabassett Valley, Maine* College of Visual Arts, a four-year private college in Minnesota...
) are CMBS structuring innovations desined to improve overall transaction credit quality. Appraisal Reductions were created in response to rating agency concerns that, without such an adjustment, cash flow from mortgages likely to default would be paid to the first-loss class. The rationale behind appraisal reductions is to support proactively the credit rating of senior CMBS tranches by reducing cash-flow payments to the subordinate tranches.
See also
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- Commercial mortgage-backed securityCommercial mortgage-backed securityCommercial mortgage-backed securities are a type of mortgage-backed security backed by mortgages on commercial rather than residential real estate....
- Residential mortgage-backed securityResidential mortgage-backed securityResidential mortgage-backed securities are a type of bond commonly issued in American security markets. They are a type of mortgage-backed security which are backed by mortgages on residential rather than commercial real estate.-Origins:...