Fixed Income【Reading 52】Sample
Which of the following statements regarding the basic structure of an asset-backed security (ABS) is least accurate? A)
| The seller and the servicer of the ABS are always the same entity. |
| B)
| Corporate bonds and emerging market bonds can be collateralized to create an ABS. |
| C)
| The flow of funds from the underlying loan, through the servicer and issuer and finally to the investor, is called the waterfall. |
|
The two separate functions of seller and servicer of an ABS can be performed by either two different entities or the same entity. |