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Level II
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Fixed Income
Fixed Income
Easy
In a securitization structure, the primary purpose of the special purpose entity (SPE) is to:
A
Achieve bankruptcy remoteness so that the originator's financial distress does not affect the securitized assets.
B
Increase the credit rating of the originator by removing risky assets from its balance sheet.
C
Allow the originator to retain full control and ownership of the underlying loan pool.
D
Minimize the tax liability for investors purchasing the asset-backed securities.
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Tags
#securitization
#spe
#bankruptcy-remoteness
#abs
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CFA Level II — Fixed Income Practice Question | AcadiFi | AcadiFi