Question

In a securitization, the issuer of asset-backed securities is best describes as the:

A Special Purpose Vehicle Correct Answer Incorrect Answer
B Seller Correct Answer Incorrect Answer
C Servicer Correct Answer Incorrect Answer
D Banker Correct Answer Incorrect Answer
E None of the above Correct Answer Incorrect Answer

Solution

Asset-backed securities are issued by a special purpose vehicle or a special purpose entity that is created for that specific purpose.

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