25-56 Why do spreads on HLT loans behave more like investment-grade bonds than like high- yield bonds?
A) They tend to be more junior in bankruptcy.
B) They tend to have greater collateral backing than do high-yield bonds.
C) Because no bank makes a market in this debt.
D) Because securities firms do not make a market in this debt.
E) They tend to have no covenant protection.
Correct Answer:
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Q39: 25-25 Selling loans without recourse is a
Q40: 25-32 Most vulture funds are formed by
Q41: 25-50 In a loan participation
A)the holder (buyer)is
Q42: 25-53 The definition of an HLT loan
Q43: 25-52 A buyer of a loan participation
Q45: 25-60 Assignments
A)are common in loan syndications.
B)do not
Q46: 25-48 Currently,this basic type of loan sale
Q47: 25-42 Which of the following is NOT
Q48: 25-51 Loan participations are typically sold to
Q49: 25-49 Loan participations
A)are riskier than loan assignments.
B)are
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