Which of the following is an advantage of using loan-backed bonds for a bank?
A) Loans used as collateral for the bonds can be sold before the maturity of the bonds
B) Loan-backed bonds have longer maturities than deposits
C) Banks do not have to meet regulatory capital requirements on loans used as collateral
D) Banks can use fewer loans as collateral than the amount of bonds issued
E) All the options are advantages of loan-backed bonds
Correct Answer:
Verified
Q76: A bank has placed 5,000 consumer loans
Q77: Securitization is used by the banks to:
A)fund
Q78: Loan sales by banks are generally of
Q79: For an issuer,a standby credit letter is
Q80: A bank is concerned about excess volatility
Q82: Recently,the regular collateralized debt obligations (CDO)market has
Q83: The coupon rate promised to investors on
Q84: Which of the following is a disadvantage
Q85: Investors in securitized loans normally receive added
Q86: When an issuer of securitized loans includes
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents