O A. The process of converting securities that are not tradable into secunities that are tradable. B. The practice of insuring assets against default loss. 0 D. The process of converting loans and other financial assets that are not tradable into securities. Why would banks make bad commercial real estate loans? Don't banks lose money if these loans default? C. The practice of-securing" payments from borrowers by reqing a pledge of colateral. O A arks o en make bad loans because they are required by government to lend money to s prime borrowers, and they ster losses that in turn requre gover ment belouts. O B. Banks might make bed loans if potential losses on the loans are bone by enties other than the banks OC. Banks might make bad loans if they do a poor ob of assessng the creditwort ness of bo roors, but they nevertheless do not inar losses because aia ante oh OD. Banks never make bad loans, loans only become bad when unforeseen shocks to the economy ooour, and banks do incur losses in these cases Why would investors buy securities that contain bad commercial real estate loans? A. investors might buy secunses contanng bad loans securities are msrepresented O B. Investors might buy securities containing bad loans if they are mk-enthusiasts 0 C. Inaccurate rating agency judgements may cause investors to buy seames oortanng bad loans O D. All of the above. O E. Only A and C are plausible