What is the most commonly bundled type of loan in the asset-backed bond category?
A) Automobile loans
B) Mortgages
C) Credit card receivables
D) Student loans

Question

Quizplus · Accepted Answer

Mortgages are the most commonly bundled type of loan in the asset-backed bond category. This is because they are large and stable assets that can generate regular cash flows, making them attractive to investors. The bundle of mortgages is then securitized and sold as bonds to investors.

What Is the Most Commonly Bundled Type of Loan in the Asset-Backed