Question: The securitization process involves using assets that are grouped together and sold to investors therefore, taking such assets out of the balance sheet of the

The securitization process involves using assets that are grouped together and sold to investors therefore, taking such assets out of the balance sheet of the asset originator. The asset originator therefore is:

No change in the overall portfolio risk of the asset originator

Decreasing the overall portfolio risk of the asset originator

Increasing the overall portfolio risk of the asset originator

This process does not change the overall portfolio risk of the investor

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