What do people think about the possible reprisal of HELs on LII? I work in Corporates and don’t know/care about anything asset backed. HELs last year really did not go so well. Do you think they will throw it on again this year? Part of me thinks we don’t see it again because it was just tested. However, given all of the current issues in the asset backed market I could see them putting it on there. Thoughts? Also, I think it is a little ridiculous how much more emphasis is placed on asset backs than leveraged corporates.
if you don’t mind me asking (i didn’t take L2 last year)- what kind of q’s did they ask last year on HEL’s? if you asked me now everything i know about HEL’s… it wouldn’t be very much. eek! structure is just like an fixed rate amortizing mortgage prepayments- would they have less prepayment risk than regular mortgages (since 2nd mortgages, people prob more strapped for $$ and less inclined to pay early? i have no idea really) enlighten me on other things i should know… there is not much in my memory about HEL’s. nope, not much at all.
Unfortunately, I don’t remember the specifics. I remember getting to that section and sort of remembering HELs was Home Equity Loan related and that was about all I knew. I think I read that section on a Wed night at 11 PM and never really reviewed it so when I saw it on the exam I knew it was going to be a long day.
They did I think ask about the Floating rate caps though.