Monday, 30 September 2019

Which of the following statements is NOT correct?

Which of the following statements is NOT correct?
Investors in ABS

A. can technically hold AAA-rated ABS while the originator of the loan in the reference pool is rated B.

B. undertake a safer investment if they hold a bond from the junior tranche rather than a bond from the senior one.

C. can trade their bonds in the secondary market.

D. receive a lower coupon rate for a bond in the senior tranche than for a bond in the junior tranche.

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