Q382
Regarding securitisation, which of the following is not correct?
A.
Derivatives are treated as on balance sheet items
AnswerB.
Granularity of securitised assets can mitigate the credit risk
C.
Credit enhancement' means credit quality is increased above from the originator's underlying asset pool
D.
Securitisation makes it possible to transfer risks from an entity that does not want to bear it, to one that does
Answer: Option A
Solution
Answer: Option A
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