medium · Asset-Backed Securities
In a 'Two-Tier' SPE structure, the originator first sells the assets to a 'Depositor' entity.
What is the main purpose of this intermediate step?
- To provide two independent 'True Sale' events for enhanced bankruptcy remoteness
- To avoid paying the trustee's fees
- To double the amount of interest income collected
- To allow the deal to be rated by three agencies instead of two
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