Future cash flows (e.g. from interest rate or mortgage payments), which are turned into marketable securities such as bonds, are referred to as secondary marketing.

Question

Quizplus · Accepted Answer

The process of turning future cash flows from various types of loans or receivables (like mortgage payments or interest rates) into marketable securities is known as securitization, not secondary marketing. Secondary marketing refers to the buying and selling of existing securities in the secondary market.

Future Cash Flows (E