[2008] Topic 54: Securitization 相关习题 all, following, describe, existing, process

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AIM 1: Define securitization and describe the process and the role the participants play.

1、Which of the following scenarios has the most favorable effect on an originator’s financial condition?

A) A true sale of all assets where proceeds are used to issue new securities.

B) A sale with subordinated tranche retention used to pay off existing debt.

C) A true sale of all assets where proceeds are used to pay off existing debt.

D) A sale with subordinated tranche retention used to purchase Treasury securities.

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The correct answer is C

If an originator retains a subordinated tranche, they are subject to the first of any losses, which may not improve their financial condition. From an investor’s perspective, the best use of asset sale proceeds is the repayment of existing debt.

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2、Securitization can transform ________, credit ___________ assets into _________, credit _________ assets.

A) illiquid, insensitive, liquid, sensitive.

B) liquid, insensitive, illiquid, sensitive.

C) illiquid, sensitive, liquid, insensitive.

D) liquid, sensitive, illiquid, insensitive. 

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The correct answer is C

Securitization is the process of pooling illiquid credit sensitive assets and repackaging into more liquid and less sensitive securities.

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3、Which of the following are possible assets for securitization?

      I. Aircraft leases.

     II. Tobacco legal settlements.

    III. Equipment used for making glass bottles.

    IV. Trade receivables.

A) I only.

B) II and III.

C) III and IV.

D) I, II, and IV.

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The correct answer is D

Any asset that either generates or has the potential to generate cash flows is a possible candidate for securitization. Aircraft leases and trade accounts receivables both generate cash flows, while tobacco legal settlements have the potential to. Equipment by itself does not directly generate cash flows; however, note that a lease on such equipment would be a candidate for securitization.

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4、Which of the following are often cited as motivations for originators to participate in the securitization marketplace?

      I. Cash is readily accessible.

     II. The amount of required regulatory capital decreases.

    III. Liability risk can be swapped for asset risk.

    IV. Assets and liabilities are better matched.

A) I only.

B) I, II, and IV.

C) I and III.

D) II and IV.

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The correct answer is B

One of the motivations for participating in the securitization marketplace has been the ability to reduce credit risk, not swap one risk for another.

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5、Securitization of trade receivables transfers which risk(s)?

A) Market risk. 

B) Credit and market risk. 

C) Credit risk. 

D) Credit, market, and operational risk. 

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The correct answer is C

By monetizing the asset, the originator has transferred the credit risk to the SPE.