- CFA Exams
- CFA Level I Exam
- Topic 6. Fixed Income
- Learning Module 17. Fixed-Income Securitization
- Subject 2. The Securitization Process
CFA Practice Question
What is the primary source of repayment proceeds for securitized bonds?
B. The cash flows generated by underlying financial assets
C. The operating cash flows from the sponsoring parent company
A. The general taxing power of the issuing party
B. The cash flows generated by underlying financial assets
C. The operating cash flows from the sponsoring parent company
Correct Answer: B
Underlying financial assets are usually collateral for securitized bonds.
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