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 bestdescribed as a(n):
A. arbitrage transaction.
B. balance sheet transaction.
C. capital infusion transaction.
参考解答
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2024-11-14 23:11:00
Ans:B;
B is correct because a balance sheet transaction is one that removes assets from the balance sheet of the institution and is often motivated by the desire to reduce the institution’s risk.
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