Which statements are true about an asset-backed security? Check all that apply: Losses are first absorbed by the equity tranche. The senior tranche has the highest promised return. A lender sells assets to a special purpose vehicle. The cash flows from the assets are allocated to tranches. Try again Which statements are true about an asset-backed security? Check all that apply: Losses are first absorbed by the equity tranche. The senior tranche has the highest promised return. A lender sells assets to a special purpose vehicle. The cash flows from the assets are allocated to tranches. Try again