Hi all,
Here is the question from end of the chapter practice questions regarding Fixed Income:
Securitization benefits financial markets by:
- increasing the role of intermediaries.
- establishing a barrier between investors and originating borrowers.
- allowing investors to tailor credit risk and interest rate risk exposures to meet their individual needs.
The right answer is C (which makes sense); however, to my mind, A also is a right choice based on the chapter about the benefits of securitization. Or, can anyone, pls explain, why A cannot be the right answer?
Thanks