Fixed Income - Fixed Income Section 1
56. Which of the following statements about securitization is least accurate? Due to securitization:
- Option : C
- Explanation : Because of securitization, the costs paid by borrowers can be effectively reduced.
57. In a securitization, the loan servicer is least likely responsible for the:
- Option : A
- Explanation : In a securitization, the special purpose vehicle (SPV) is responsible for the issuance of the asset backed securities.
58. In a securitization, the seller of the collateral is called the:
- Option : B
- Explanation : In a securitization, the seller of the collateral is called the originator.
59. A special purpose vehicle (SPV) most likely:
- Option : B
- Explanation : Special purpose vehicles (SPV) sell asset backed securities. The originator sells assets (receivables) to the SPV for cash. The servicer is responsible for the collection of payments from the borrowers.
*/?>
*/?>
*/?>
*/?>