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Exam Code: CTAL-TM-001
Exam Name: ISTQB Certified Tester Advanced Level - Test Manager
Vendor: ISQI

60 Questions & Answers
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NEW QUESTION: 1
A system administrator was asked by an application team to find out when their queue manager running on IBM i System was started.
Which Command Language (CL) command should the system administrator run?
A. DSPMQM
B. DSPMQMQ
C. DSPMQMSTS
D. DSPMQMCSVR
Answer: C

NEW QUESTION: 2
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.
Regarding the CMO, are Wayne's statements correct?
A. Both statements are correct.
B. Only Statement 2 is correct.
C. Only Statement 1 is correct.
Answer: B
Explanation:
Explanation/Reference:
Explanation:
Statement 1 is incorrect. The PAC I tranche has less extension risk and less contraction risk than the support tranche. It has less contraction risk because when rates fall and prepayment speeds increase, the average life of the PAC I tranche falls by less than the average life of the support tranche. It has less extension risk because when rates rise and prepayment speeds fall, the average life of the PAC I tranche increases by less than the support tranches average life.
Statement 2 is correct. If interest rates decrease by 100 basis points, prepayment speeds will increase.
The support tranche will absorb most of the unexpected prepayments, however, and its cash flows will be significantly affected, while the PAC I tranche will be minimally affected. (Study Session 15, LOS 55.h,i)

NEW QUESTION: 3
How should you add a Web page reference to a report?
A. Take a screenshot of the Web page; in a Word object, insert a 1x1 table then paste the screenshot into the table for optimal formatting control.
B. Add an object to the report; set the type to Web page and type the URL in the address bar.
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D. Take a screenshot of the Web page and save it as an image; in a Word object, select import from the FSR toolbar and select the image file saved.
Answer: B


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