Issuers of securitized assets add to the appeal to investors by
A) Overcollateralizing the pool
B) Having private insurers insure the underlying assets in the pool
C) Having credit rating agencies assign a credit rating to the pool
D) All of the above

Question

Quizplus · Accepted Answer

Issuers of securitized assets enhance their appeal to investors through various means: overcollateralizing the pool provides additional security against defaults, having private insurers insure the underlying assets reduces the risk of loss, and obtaining credit ratings for the pool helps investors assess its creditworthiness. All these measures are designed to make the securitized assets more attractive to investors.

Issuers of Securitized Assets Add to the Appeal to Investors