Question

What does securitization allow issuers to do?

a.

Issue insurance policies to cover specific risks.

b.

Convert their underlying assets into securities or pass through certificates (PTCs).

c.

Access reinsurance capacity for high-risk exposures.

d.

Facilitate risk transfer through alternative risk transfer methods.

Answer: (b).Convert their underlying assets into securities or pass through certificates (PTCs). Explanation:Securitization allows issuers to convert their underlying assets into securities or pass through certificates (PTCs).

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Q. What does securitization allow issuers to do?

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