Securitization of assets usually involves

Question

Quizplus · Accepted Answer

Securitization of assets involves pooling together assets, such as receivables, and issuing securities backed by those assets to many different investors. This allows for more efficient funding and transfer of risk. Choice A is incorrect because securitization involves selling to multiple investors, not just one company. Choice B is incorrect because the seller may continue to service the receivables or hire a third-party servicer. Choice C is incorrect because securitization typically involves high-quality assets to attract investors.

Securitization of Assets Usually Involves