What are securitised bonds?
A) They appear on the asset side of the bank balance sheet.
B) These are complex, financially engineered instruments.
C) These bonds are given AAA credit rating.
D) Both A and B.
E) Both B and C.

Question

Quizplus · Accepted Answer

Securitised bonds are complex, financially engineered instruments that are backed by a pool of assets, making them appear on the asset side of the bank balance sheet. While they can receive high credit ratings, not all are automatically given an AAA rating, as this depends on the quality of the underlying assets.

What Are Securitised Bonds