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For an asset-backed security (ABS), a special purpose entity A) sells an asset to the issuing corporation, which then proceeds to issue the ABS B)

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For an asset-backed security (ABS), a special purpose entity A) sells an asset to the issuing corporation, which then proceeds to issue the ABS B) is used to separate assets used as collateral from those of the company seeking financing through an ABS c) acts as an intermediary that purchases an asset from the company issuing an ABS and then resells it to obtain sufficient liquid funds to provide collateral for the ABS

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