Due to the ________, Quality of the Collateral, and Credit

question 37

Multiple Choice

Due to the ________, quality of the collateral, and credit enhancement, a corporation can raise funds via a ________ where some of the bond classes have a credit rating better than the corporation seeking to raise funds and where in the aggregate the funding cost is less than issuing corporate bonds.

• A) SPV; mobilization
• B) OTC; mobilization
• C) SPV; securitization
• D) OTC; securitization

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Definitions:

Sugar

A sweet-tasting, soluble carbohydrate found in many plants, which is commonly used as a sweetener in food.

Slope

The measure of the steepness or incline of a line, defined as the ratio of the vertical change to the horizontal change between two points on the line.

API Gravity Degrees

A measure used in the petroleum industry that expresses the density of petroleum liquids relative to water; higher API gravity indicates a lighter oil.

Standardized Residuals

The differences between observed and predicted values, scaled by an estimate of standard deviation.