Read the following passage and mark the letter A, B, C or D on your answer sheet to indicate the correct word or phrase that best fits each of the numbered blanks.

   The traditional method of managing credit risk is through diversification. Although (46) ___credit risk through diversification is effective, institutions are often constrained by lack of diversification opportunities on account of limited area of operations. During the last few years, managing credit risk through selling assets by way of securitization has (47) ___ in popularity. The market for securitized assets has grown impressively in the last few years and is expected to grow further in the (48) ___ years. This mode of credit risk mitigation is most (49) ___ to loans with standardized payment schedule and similar credit risk characteristics such as housing loans, auto loans, credit card receivables, etc. Further, shedding loans through securitization might (50)___ client relationship. In this context, credit derivatives provide a new technique for managing credit risk.

(47):

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