Question

Securitization of loan portfolios, such as credit card loans and mortgage loans, will occur if
a. the financial market will pay more for the loan portfolio than the issued asset- backed securities.
b. the financial market will pay more for the issued asset-backed securities than the loan portfolio.
c. a financial guarantee is obtained from a commercial bank.
d. the borrowers permit their loan to be securitized.
e. both a and d

Answer

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