Identify the Following Terms

question 35

Short Answer

Identify the following terms.
-Tanizaki's Some Prefer Nettles

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Definitions:

Special Purpose Vehicles

Entities created for a specific financial transaction or to isolate financial risk, used in securitizations and project finance.

Asset Securitization

The process of pooling and repackaging of homogenous illiquid financial assets into securities that can be sold to investors.

Credit Enhancements

Strategies or financial products used to improve the credit worthiness of a financial transaction, reducing the risk for investors.

Warrants

Call options issued by a company allowing the holder to buy a stated number of shares of stock from a company at a specified price. Warrants are generally distributed with debt, or preferred stock, to induce investors to buy those securities at a lower cost.