General Knowledge · General Awareness
What does the term 'Securitization' refer to in the context of banking and finance?
- 1The purchase of assets by the Obligor.
- 2The management of assets by a third-party entity.
- 3The process of transferring performing assets to an SPV in return for immediate payment.✓
- 4The creation of a bankruptcy-remote SPV.
Correct answer
The process of transferring performing assets to an SPV in return for immediate payment.
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