Firms often bundle up a group of assets and then sell the cash flows from these assets in the form of securities. They are called
A)debentures.
B)subordinated issues.
C)asset-backed securities.
D)mortgage bonds.

Question

Quizplus · Accepted Answer

The description of bundling up assets and selling cash flows in the form of securities refers to asset-backed securities. Debentures are unsecured debt instruments, subordinated issues are a type of bond with lower priority in repayment, and mortgage bonds are backed by a specific property.

Firms Often Bundle Up a Group of Assets and Then