alleryStart learning →The pooled assets are transferred to an entity formed only to fund them. What is it called?
AA holding company
BA joint venture firm
CSpecial purpose vehicle
DA mutual fund house
Answer & Solution
Correct answer: C. Special purpose vehicle
The issuer is a special purpose vehicle (SPV), a company or trust created for the specific purpose of funding the assets.
Keep practising Securitization
Browse all Securitization questions for CA Final, or explore more Strategicfinancialmanagement topics.
Related questions
Why is credit card debt called a nonamortizing loan?Which US agency guarantees timely MBS payments with the full faith and credit of the US goWhich extra risk does an MBS carry compared with a vanilla corporate bond?A pool has Rs 200 lakh maturing in 120 months and Rs 600 lakh maturing in 240 months. WhatA mortgage pool has Rs 300 lakh at 6% and Rs 100 lakh at 8%. What is the weighted-average An MBS factor measures what?A principal-only (PO) stripped MBS has cash flows backed by what?Which MBS is backed by mortgages on single-family, one- to four-unit real estate?