Which structure would receive a higher credit rating and why?
What will be an ideal response?
Generally, a subordinated class will receive a lower credit rating. Thus, because Structure II has a smaller subordinate class, it will likely receive a higher credit rating even though its pool of automobile loans is slightly smaller. However, through various forms of credit enhancement and features (such as options) attached to various classes, it is possible both structure could receive the same credit rating.
You might also like to view...
Use the information provided in Table 8.4. Adding $1,000 of Weekly Radio Advertising (X1 ) can be expected to increase Weekly Gross Revenues by what amount? (Assume all other variables are held constant.)
A) $20,500 B) $3,750 C) $6,500 D) $10,250
Which of the following was passed to give individuals the right to access their own health data created by doctors and other healthcare providers?
A) the Privacy Act of 1974 B) the Sarbanes-Oxley Act C) the HIPAA of 1996 D) the Gramm-Leach-Bliley Act