Suppose that Wells Fargo Home Mortgage sells $10 million worth of mortgage payments to GMAC in exchange for $10 million in auto loan payments.This type of transaction is called a

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This type of transaction is called a credit swap, where two parties exchange cash flows based on their respective creditworthiness. In this case, Wells Fargo Home Mortgage is transferring the credit risk associated with its mortgage payments to GMAC in exchange for the credit risk associated with GMAC's auto loan payments.

Suppose That Wells Fargo Home Mortgage Sells $10 Million Worth