Which of the following is the more traditional form of off-balance sheet subsidiary for removing loans from the FIs balance sheet?
A)Special Purpose Vehicle (SPV)
B)Asset-Backed Structure (ABS)
C)Structured Investment Vehicle (SIV)
D)Collateralized Mortgage Operation (CMO)
E)Mortgage Backed Subsidiary (MBS)

Question

Quizplus · Accepted Answer

Special Purpose Vehicles (SPVs) are the more traditional form of off-balance sheet subsidiaries for removing loans from the FIs balance sheet. They are created for a specific purpose and are used to isolate financial risk. ABS, SIVs, CMOs, and MBSs are also off-balance sheet subsidiaries, but they may not be as traditional as SPVs.

Which of the Following Is the More Traditional Form of Off-Balance