题目
From the perspective of a bank，which of the following is not an advantage of using a collateralized debt obligation (CDO) to transfer credit risk?
选项
A.Bank profitability can be accelerated due to higher loan turnover.
B.Credit risk is effectively transferred to investors.
C.There will always be a market for CDO products.
D.A larger pool of potential borrowers will exist due to less concern for lending (underwriting) standards.
答案
C
解析
Collateralized debt obligations transfer creditrisk from banks to investors. This process enables banks to accelerate the loanorigination cycle and therefore enjoy potentially higher profitability due tosourcing more loans than would otherwise be accessible. The pool of potentialborrowers is increased because banks are less concerned with lending standards.However，when investors lose interest in CDO products due tohigher-than-expected default rates，the loan originator (the bank)can be stuck with a large amount of credit risk on their balance sheet.抵押债务义务将信用风险从银行转移给投资者。 此过程使银行可以加快贷款的发起周期，并因此通过采购比其他方式可获取的更多的贷款而享有更高的获利能力。 潜在借款人的数量增加了，因为银行不太关心贷款标准。 但是，当投资者因违约率高于预期而对CDO产品失去兴趣时，贷款发起人（银行）可能会在其资产负债表中承受大量信用风险。