Check all potential advantages of securitization.A. Securitization helps diversity risk instead of holding on to a particular mortgageB. Securitization makes lenders take responsibility for the long-term stability of the loanC. Securitization is great for widening the pool of investorsD. Securitization helps remove assets from the balance sheet to maintain capital requirementsE. Securitization provides a way to sell illiquid assets

Answer :

Answer:

  • A. Securitization helps diversity risk instead of holding on to a particular mortgage.
  • C. Securitization is great for widening the pool of investors.
  • D. Securitization helps remove assets from the balance sheet to maintain capital requirements.
  • E. Securitization provides a way to sell illiquid assets

Explanation:

  • The process of the scrutinization is a financial function that includes the pooling of the contractual debts and loans and mortgage and other debts and seeing to their related cash flows party investors as in the forms of bonds and  obligations and unlike the general corporate debt and the credit quality. And is typically a company looking to raise the capital and is a time and structure-dependent.

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