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Question: which of the following is a benefit of securitization for...

Question details

Which of the following is a benefit of securitization for the originator of the loans?

 

A.

The originator can get more bank deposits as assets if it is a finance company.

B.

The originator can replace some non interest income by interest income.

C.

The originator can replace a nonrealized capital gains on trading securities by a servicing fee to the SPV.

D.

The originator can free reserves at the central bank as it has removed some credit risk.

E.

None of the above are benefits of securitization to the loan originator.

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