Banking · Securitization
Securitization is the process of pooling homogeneous illiquid financial assets into a marketable instrument and selling them to investors. The entity that purchases these assets from the originator bank is called the:
- 1Servicer
- 2Special Purpose Vehicle (SPV)✓
- 3Trustee
- 4Credit Rating Agency (CRA)
Correct answer
Special Purpose Vehicle (SPV)
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