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The CDS protection buyer makes periodic payments to the protection seller over the life of the contract. Which of the following statements is not a consequence of the securitization?
A
Securitization makes originating banks approve and monitor loans carefully.
B
Securitization transfers the default risk of the underlying assets to investors.
C
Securitization enabled the originating institutions offer lower interest rates on mortgages.
D
Securitization may allow institutional investors to indirectly hold assets that they are prevented from holding directly.
