The largest sector of the asset-backed security market is the ________ market.
A)collateralized debt obligation
B)mortgage-backed security
C)real property-backed security
D)double-barreled security

Question

Quizplus · Accepted Answer

The largest sector of the asset-backed security market is the mortgage-backed security market, which is backed by a pool of residential or commercial mortgages. Collateralized debt obligations (A) are backed by a pool of various types of debt such as corporate bonds, bank loans, or structured finance securities. Real property-backed securities (C) are backed by a pool of real estate properties, such as commercial or residential properties. Double-barreled securities (D) are issued by local governments and backed by both the full faith and credit of the issuing government and specific revenue streams, such as taxes or tolls.

The Largest Sector of the Asset-Backed Security Market Is the ________