Which of the following is a debt security whose payments originate from other loans,such as credit card debt,auto loans,and home equity loans?
A) Asset-backed securities
B) Credit quality securities
C) Debentures
D) Junk bonds

Question

Quizplus · Accepted Answer

Asset-backed securities are debt securities whose payments originate from other loans, such as credit card debt, auto loans, and home equity loans. These loans are packaged together and sold to investors as securities. The cash flow generated from the repayment of the loans is used to pay the principal and interest on the asset-backed securities.

Which of the Following Is a Debt Security Whose Payments