In the Early 2000s, an SPV Would Issue Bonds in Bundles

question 6

Multiple Choice

In the early 2000s, an SPV would issue bonds in bundles to reflect different levels of risk. The process of splitting up the bundles of debt into these different levels of risk is called ________.

• A) insuring.
• B) priming.
• C) protecting.
• D) tranching.

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Definitions:

Sampling Distribution

The probability distribution of a statistic based on a large number of samples or replicates.

Independent Samples

Two or more groups of data that are collected from unrelated or non-paired subjects.

Population Means

The average value of a particular characteristic across the entire population.

State Supported Facilities

Institutions or properties that receive financial support from a government entity to carry out certain functions or services.