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Answer each of the following questions relating to securitisation. a)Discuss the main motivating factors for a financial institution to undertake a securitisation transaction. b)What is

Answer each of the following questions relating to securitisation.

a)Discuss the main motivating factors for a financial institution to undertake a securitisation transaction.

b)What is an SPV in securitisation, and why is it used?

c)Describe the process of tranching in a securitised transaction.

d)What is a CDO? What role, if any, did CDOs play in the 2008 Global Financial Crisis?

e)Explain the risk management objective of the following in using securitisation:

-The originator / issuer

-The investor

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