I To enter a CDS, the buyer is not required to hold a bond of the reference entity to be posted as collateral. II In a loan sale, a new security is created that is backed by the loan's cash flows III Through securitization, banks can reduce regulatory taxes such as capital and reserve requirements IV ABS Equity tranches are typically rated AA or better 3. (8 points) Which of the above statements are true? (a) I only (b) II and III only (C) I and III only (d) II and IV only (e) III and IV only