The profitability of securitised assets is largely determined by the special purpose vehicle's:
A)debt to equity ratio
B)credit rating
C)ownership
D)timing insurance

Question

Quizplus · Accepted Answer

The credit rating of the special purpose vehicle (SPV) is a crucial factor in determining the profitability of securitised assets. A higher credit rating allows the SPV to issue securities at a lower cost, which in turn increases the potential profitability of the underlying assets.

The Profitability of Securitised Assets Is Largely Determined by the Special