1) A $1 million ABS comprised of 25 $20,000 Honda Civic & Toyota Camry auto loans plus 1, $500,000 Ferrari auto loan would be an example of ________________ risk.
2) For a corporation, using ABS as a way to raise capital vs. using a conventional corporate bond issue can likely (increase/decrease) the company’s cost of capital.
3) ‘Hawkish Fed policy’ implies ________ rates while ‘Dovish Fed policy’ implies __________ rates.