a goal of securitization is to:
A) separate the seller's collateral from its credit ratings.
B) uphold the absolute priority rule in bankruptcy reorganizations.
C) account for collateral's primary influence on corporate bond credit spreads.

Question

Quizplus · Accepted Answer

Securitization allows the seller to separate the collateral (such as mortgages or other assets) from its credit rating, which can improve the marketability and pricing of the securities created from the securitization process.

A Goal of Securitization Is To