CDOs Are Categorized Based on the Motivation of the Sponsor

Multiple Choice

CDOs are categorized based on the motivation of the sponsor of the transaction. If the sponsor's motivation is to earn the spread between the yield offered on the collateral and the payments made to the various tranches in the structure, then the transaction is referred to as ________.

A) a collateral transaction.
B) an arbitrage transaction.
C) a motivational transaction.
D) All of these