Which of the Following Statements Is NOT True About Asset-Backed

question 15

Multiple Choice

Which of the following statements is NOT true about asset-backed securities (ABS) ?

• A) ABS are issued by a legal entity called a special purpose vehicle (SPV).
• B) ABS SPV assets consist of a collection of loans.
• C) ABS are tranched so that the cash flows follow a "waterfall."
• D) ABS are sometimes called structured debt.
• E) ABS are very similar to corporate debt.

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