Question #11
Reading: Reading 28 Credit Analysis Models
PDF File: Reading 28 Credit Analysis Models.pdf
Page: 4
Status: Correct
Correct Answer: B
Question
An investor in an ABS would face which risks on account of the ABS servicer?
Answer Choices:
A. Operational and concentration risk
B. Operational and counterparty risk
C. Credit and concentration risk
Explanation
After origination, investors in secured debt face the operational and counterparty risk of
the servicer.