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D. SIV invests in assets that are designed to generate higher returns than the SIV's cost of fund, E. If the assets in the underlying

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D. SIV invests in assets that are designed to generate higher returns than the SIV's cost of fund, E. If the assets in the underlying pool does not generate sufficient cash flows, the SIV is still obligated to make interest and principle payments on its debt instruments QUESTION 15 Which of the following statements about SPV and SIV is NOT correct? A. SIV's lifespan is not tied to any particular security, while SPV's life is limited to the maturity of the ABS. B. Unlike SPV, SIV does not simply pass through the payments on the loans in its portfolio to the ABCP investors. C. SPV pays out only what it receives from the underlying loans in the pool of assets backing the ABS. D. SIV is responsible for payments on its ABCP obligations whether or not the underlying pool of assets generates sufficient cash flow to cover these costs. E. None of the above QUESTION 15 Which of the following statements about SPV and SIV is NOT correct? A. SIV's lifespan is not tied to any particular security, while SPV's life is limited to the maturity of the ABS B. Unlike SPV, SIV does not simply pass through the payments on the loans in its portfolio to the ABCP investors. C. SPV pays out only what it receives from the underlying loans in the pool of assets backing the ABS. D.SIV is responsible for payments on its ABCP obligations whether or not the underlying pool of assets generates sufficient cash flow to cover these costs. E. None of the above

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