Question

In: Finance

Securitization can help in the following: Select one: a. Managing the credit risk b. Managing the...

Securitization can help in the following: Select one:

a. Managing the credit risk

b. Managing the interest rate risks

c. All of these

d. Raising funds

Solutions

Expert Solution

Securitization can help an entity in order to raise finances because it can help in issuance of self manufactured securities out of various receivables.

Securitization will also be helpful in management of the credit risk because when there will be problems related to default upon that the company can issue various securities in order to generate liquidity and it will also help in management of the interest rate risk.

The correct answer will be option (C) all of the above.


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