Which of the Below Statements Is TRUE

Multiple Choice

Which of the below statements is TRUE?

A) Typically when amortizing assets are not securitized, the collateral is fixed over the life of the structure.
B) To deal with situations where there may be a match between the cash flow characteristics of the asset and the liabilities, interest rate derivative instruments are used in a securitization
C) The assets that are securitized can have a fixed rate or a floating rate.
D) If the reference rate for the floating-rate bond classes decreases sufficiently, there could be a shortfall between the interest received from the collateral and the aggregate interest payment that must be made to the bond classes.