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Question
Why are securitized loans often issued through a special-purpose entity?
A. Because the securitized loans often add risk to the bank and need to be held separately
B. Because the securitized loans are not profitable for the bank and need to be held separately
C. Because the special-purpose entity might fail and this prevents the failure of the bank
D. Because the bank might fail and this protects the credit status of the securitized loans
E. All of the options are correct
Answer
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Related questions
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