The yield to maturity is known as implied market discount
rate, and not implied coupon rate. It can also be called yield to redemption
or the internal rate of return.
Fixed Income MCQ - Fixed Income Section 1
Securitization allows banks to remove assets from their balance sheet,
therefore increasing the pool of available capital that can be loaned out.
Securitization is beneficial for investors because it provides direct access
to mortgages and portfolios of receivables that would be otherwise
unattainable.
The benefits of securitization include transfer of credit risk, increased
funding availability without increasing reserve requirements, and
automatically decreased market capital requirements.
