Which of the following is an advantage of securitizing loans?

Question

Quizplus · Accepted Answer

All of these options are advantages of securitizing loans. Diversifying credit risk exposure helps lenders reduce their overall risk, while reducing the need to monitor each individual loan's payment stream saves time and resources. Securitization also turns illiquid loans into liquid securities, making them easier to buy and sell. Finally, securitization provides a new source of funds for lenders, while also offering attractive investments for investors looking for stable cash flows.

Which of the Following Is an Advantage of Securitizing Loans