medium · Asset-Backed Securities regulatory
In a two-tier ABS structure, what is the role of the intermediate 'depositor' entity?
- To provide external credit enhancement via a surety bond or third-party letter of credit
- To facilitate two independent true-sale events to strengthen the transaction's bankruptcy remoteness
- To serve as the primary servicer responsible for collecting, advancing, and liquidating defaulted collateral
- To act as the Qualified Institutional Buyer purchasing bonds in a Rule 144A private placement
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