In the early 2000s, an SPV would issue bonds in bundles to reflect different levels of risk. The process of splitting up the bundles of debt into these different levels of risk is called ________.
A) insuring.
B) priming.
C) protecting.
D) tranching.

Question

Quizplus · Accepted Answer

The process of splitting up the bundles of debt into different levels of risk is called tranching.

In the Early 2000s, an SPV Would Issue Bonds in Bundles