Pool of receivables hain usko bank ya FI ne apne balancesheet se hatake kisi spv ko de diya. Un assets ke basis pe spv ne aage securities issue krdi. Ab bank ko apna paise mila gya bech ke. Toh ab voh aur loan desakta hain. Aur spv ke pass loan ka int. Aayega aur aage voh securities ko int. Dengi. Bichmain profit booking hogi.
Which security can satisfy me more i will choose that security and how much risk averse im, according to my credit exposure i will choose security. Securitisation main alag alag loan hain credit card receivables bhi aur mortgage receivables b h aur b kai saare main. Main apni suitability se select karungi.
see if u read option A, it means that by selling loans (for eg) to SPV , banks take money from SPV and lend that . then coming to option C in securitization the main thing is tranching so option A and C r correct…Now left is option B…But if u think logically securitization improves profitability of fin intermediary as they could sell their old loans then give new loans and so on
It is quite simple.
Pool of receivables hain usko bank ya FI ne apne balancesheet se hatake kisi spv ko de diya. Un assets ke basis pe spv ne aage securities issue krdi. Ab bank ko apna paise mila gya bech ke. Toh ab voh aur loan desakta hain. Aur spv ke pass loan ka int. Aayega aur aage voh securities ko int. Dengi. Bichmain profit booking hogi.
Now reads 3 options you will understand.
Hope it helps!
In this qustn, just option C samjh nehi aya, uska language.
Option C thoda samjhayo na
Different Tranches available for investors
Which security can satisfy me more i will choose that security and how much risk averse im, according to my credit exposure i will choose security. Securitisation main alag alag loan hain credit card receivables bhi aur mortgage receivables b h aur b kai saare main. Main apni suitability se select karungi.
see if u read option A, it means that by selling loans (for eg) to SPV , banks take money from SPV and lend that . then coming to option C in securitization the main thing is tranching so option A and C r correct…Now left is option B…But if u think logically securitization improves profitability of fin intermediary as they could sell their old loans then give new loans and so on