Debt instruments that are backed by a segregated pool of high-quality assets which remain on the DI's balance sheet are
A)covered bonds
B)core deposits
C)asset-backed equity
D)repos

Question

Quizplus · Accepted Answer

Debt instruments backed by a segregated pool of high-quality assets which remain on the DI's balance sheet are called covered bonds. Core deposits refer to a bank's deposits from its regular customers. Asset-backed equity does not exist as a common financial term, and repos are repurchase agreements that involve the sale and repurchase of securities.

Debt Instruments That Are Backed by a Segregated Pool of High-Quality