Question
If the originator of the loans that have been securitized buys all Asset backed securities, the originator bears the credit risk of the loans but
If the originator of the loans that have been securitized buys all Asset backed securities, the originator bears the credit risk of the loans but gets more liquid assets. Explain
Step by Step Solution
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Step: 1
When a loan originator securitizes loans they essentially bundle a group of loans together and sell ...
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Fundamentals of Financial Management
Authors: Eugene F. Brigham, Joel F. Houston
12th edition
978-0324597714, 324597711, 324597703, 978-8131518571, 8131518574, 978-0324597707
