Why do at least some investors like to invest in asset-backed securities? Check all that apply: ☐ ABS are less risky than bonds with the same rating. It lowers their capital requirements. ☐ It gives them control over more assets. ☐ ABS often pay higher interest rates than bonds with the same rating.
Why do at least some investors like to invest in asset-backed securities? Check all that apply: ☐ ABS are less risky than bonds with the same rating. It lowers their capital requirements. ☐ It gives them control over more assets. ☐ ABS often pay higher interest rates than bonds with the same rating.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:Why do at least some investors like to invest in asset-backed securities?
Check all that apply:
ABS are less risky than bonds with the same rating.
It lowers their capital requirements.
It gives them control over more assets.
ABS often pay higher interest rates than bonds with the same rating.
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