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Potential benefits of securitization for the bank

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Reference no: EM133112900

A bank is thinking about securitizing its subprime credit card receivables.

a) What are two potential benefits of securitization for the bank?

b) How would an investor who can only purchase AAA rated exposures be able to buy into the securitization?

c) How could the offering have a maturity of nine years when the average life of the receivables is only 18 months?

Reference no: EM133112900

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