What is the difference between a one-step securitization and a two-step securitization?
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In a one-step securitization, the originator of the loans sells the receivables to the SPV who is referred to as the "issuer" or "trust" of the asset-backed securities (ABS). In a two-step securitization, the securitization involves two SPVs. This is done to ensure that the transaction is considered a true sale for tax purposes. One SPV is called an intermediate SPV, which is
a wholly owned subsidiary of the originator and has restrictions on its activities.It is the intermediate SPV that purchases the assets from the originator. The intermediate SPV then sells the assets to the SPV that issues the ABS (i.e., the issuing entity).
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Compare and contrast the format and purpose of backgrounders, fact sheets, and FAQs
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Which types of inventories does a manufacturing business report on the balance sheet?
A) Finished goods inventory and work in process inventory B) Direct materials inventory and work in process inventory C) Direct materials inventory, work in process inventory, and finished goods inventory D) Direct materials inventory and finished goods inventory
Experience curves and the PIMS model both seem to imply that market share is an essential ingredient of a winning strategy. Does that mean that a company with a low market share has no way of running a profitable business?
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Which of the following statements about break-even analysis is incorrect?
A) No start-up costs exist. B) Economies of scale cannot be achieved. C) Variable costs vary as output changes. D) Fixed costs vary as output changes.