I To enter a CDS, the buyer must hold a bond of the reference entity to post 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 The Senior 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