标题: ABS - why no business/operating risks? [打印本页] 作者: hoangvu90 时间: 2011-7-11 19:29 标题: ABS - why no business/operating risks?
Schweser Book 4 page 149: "There are no business or operating risks to assess with an ABS."
Can someone explain why?作者: eoin 时间: 2011-7-11 19:29
because there is no underlying business that ability to repay the debt is based on作者: tarunajwani 时间: 2011-7-11 19:29
an ABS is based on credit card receivables, student loans, etc. these collaterals do not involve business operations, the collaterals are simply loans which generate principal and interest payments and simply involve prepayment risks and credit risks
