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.

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter8: Analysis Of Risk And Return
Section: Chapter Questions
Problem 21QTD
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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.
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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