Question 1
Pass-through securities backed by pools of auto loans, credit card bills, and computer leases are known as
◦ PIK bonds.
◦ REIMCs.
◦ ABSs.
◦ Fannie Maes.
Question 2
Securitization is the practice of
◦ bundling loans into large pools and dividing them into bond-like securities.
◦ selling government debt in the private sector.
◦ increasing the safety of asset backed securities by insuring them.
◦ protecting the privacy of borrowers whose loans have been sold to a third party.