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An Originate-To-Sell Model When Dealing with Below Investment Grade Companies

question 44

True/False

An originate-to-sell model when dealing with below investment grade companies is considered an attractive alternative for FIs, which have specialized credit monitoring skills, as compared with keeping the loans in their portfolio.

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Definitions:

Incentives

Motivations or rewards offered to encourage specific behaviors or actions in individuals or groups.

Autonomy

The degree to which a job provides an employee with discretion and independence to schedule their work and determine how it is done.

Intrinsic

Refers to motivation or value driven by internal satisfaction rather than material rewards.

Extrinsic

Refers to motivation driven by external rewards, such as money or praise, rather than internal satisfaction.

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