easy · Asset-Backed Securities
What role does the 'True Sale Opinion' play in a securitization transaction?
- It is a legal letter that gives comfort to investors and agencies that the asset transfer is a valid sale.
- It provides a calculation of the expected loss on the loan pool.
- It guarantees that the market price of the bonds will never fall below par.
- It is a document where borrowers agree to never default on their payments.
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