The securitization of assets relies on

Question

Quizplus · Accepted Answer

Securitization of assets involves pooling together assets such as loans or mortgages and selling securities backed by these assets to investors. The key to successful securitization is the ability of the underlying assets to generate a stream of income over time, which is used to pay the interest and principal on the securities. Therefore, option B is the correct choice. Options A and D are irrelevant to the securitization process, and option C is not necessarily true as the present value of income streams may vary depending on market conditions.

The Securitization of Assets Relies on