medium · Asset-Backed Securities tranching
In a 'Two-Tier' SPE structure, what is the primary role of the first-tier 'Depositor' entity?
- To act as the primary loan servicer collecting payments from the obligors
- To provide an additional true-sale event to separate assets from the originator
- To hold the cash-funded reserve account established for the direct benefit of noteholders
- To issue the final rated ABS bonds directly to institutional and retail market investors
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