Mingle Corporation sold its receivables to a speci
Mingle Corporation sold its receivables to a special purpose vehicle, MGT Corporation, created by Mingle for that purpose. If MGT sells securities backed by the receivables, the credit rating associated with those securities will most likely be based on the:
A. creditworthiness of Mingle.
B. creditworthiness of MGT.
C. collateral and credit enhancement mechanisms used.
参考解答
406***102
2024-11-14 23:38:43
Ans:C;
C is correct because the rating of asset-backed securities typically is independent of the issuer or originating firm’s credit; the rating depends on the collateral offered and the strength of any external or internal credit enhancements.
相似问题
A bond is selling for 98.6. It is estimated that t
A bond is selling for 98 6 It is estimated that the price will fall to 97 0if yields rise 30 bps and that the price wi
When a bank creates a collateralized loan obligati
When a bank creates a collateralized loan obligation (CLO) to divest of commercial loans that it owns, the process is bestd
Which of the following is least likely a tool used
Which of the following is least likely a tool used by the U S Federal Reserve Bank to directly influence the level of interest rates?A Verbal persuasion B Open market operations C Setting the rate on 30-year bonds
An investor fears that economic conditions will wo
An investor fears that economic conditions will worsen and the market prices of her portfolio of investment-grade corporate b
According to the Liquidity Preference Theory is t
According to the Liquidity Preference Theory, is the term structure of interest rates most likely related to:A expectations
