What is a type of asset issued by special purpose vehicles (SPV) and backed by the cash flows of specific securities?
A) Term loan
B) Line of credit
C) Bankers' acceptance
D) Revolving Line of credit
E) Asset-backed commercial paper

Question

Quizplus · Accepted Answer

Asset-backed commercial paper (ABCP) is a type of asset issued by special purpose vehicles (SPVs) and backed by the cash flows of specific securities, such as loans, credit card debt, or receivables, rather than by the credit of the issuing corporation. This makes it a unique financial instrument designed to provide liquidity and funding for various assets.

What Is a Type of Asset Issued by Special Purpose