Choose the correct answer:
A)While pass-throughs and CMOs remain on banks and building societies balance sheets, mortgage-backed bonds (MBBs) remove mortgages from balance sheets as forms of off-balance-sheet securitisation.
B)While pass-throughs and CMOs help banks and building societies remove mortgages from their balance sheets as forms of off-balance-sheet securitisation, mortgage-backed bonds (MBBs) normally remain on the balance sheet.
C)Pass-throughs and CMOs are the same as mortgage-backed bonds (MBBs).
D)None of the listed options are correct.

Question

Quizplus · Accepted Answer

Pass-throughs and CMOs are forms of securitisation that allow banks and building societies to remove mortgages from their balance sheets. In contrast, MBBs typically remain on the balance sheet.

Choose the Correct Answer