easy · Asset-Backed Securities

For a transaction to be 'Shelf-Eligible' under Regulation AB II, what must the sponsor do regarding 'Risk Retention'?

  1. Buy a default insurance policy from a third party
  2. Transfer 100% of the risk to the investors immediately
  3. Comply with the credit risk retention requirements and disclose the method of retention
  4. Pledge their corporate headquarters as collateral

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