Which of the Following Best Describes the Benefits to the Borrower

Multiple Choice

Which of the following best describes the benefits to the borrower of selling asset backed securities?

A) due to the portfolio effect, the borrower can package up low quality accounts receivable and sell them for a premium price
B) the borrower trades current cash flows for future cash flows
C) the asset-backed security may carry a better credit rating
D) none of the answers is correct