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 future cash flows for current cash flows.
C) The asset-backed security is likely to carry a high credit rating of AA or better.
D) The borrower trades future cash flows for current cash flows and the asset-backed security is likely to carry a high credit rating of AA or better.