Asset-backed securities and corporate bonds differ in terms of:
A) Credit risk.
B) Operational risk.
C) Investment risk.
D) a and b only.
E) None of the above.

Question

Quizplus · Accepted Answer

Asset-backed securities and corporate bonds differ primarily in credit risk and operational risk. Asset-backed securities are backed by specific assets, which can affect their credit risk differently than corporate bonds, which rely on the issuer's creditworthiness. Operational risk can also differ due to the complexity of managing the underlying assets in asset-backed securities.

Asset-Backed Securities and Corporate Bonds Differ in Terms Of