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A bank is planning to securitize car loans by creating an SPV. The bank would sell the loans to an SPV through a "true sale" and the SPV would issue securities under a "revolving securitization structure." The project manager is reviewing characteristics of securitization transactions in general as well as specific features that are commonly incorporated into revolving structures. Which of the following statements is correct?
A
The credit quality of the securitized car loan assets would be enhanced if the principal value of securities issued is higher than the principal value of the assets.
B
The SPV can allow the bank to access cheaper funding if the credit quality of the securitized car loan assets is higher than the credit quality of the bank's balance sheet.