Cryptocurrency Q&A What is an example of an ACE?

What is an example of an ACE?

Maria Maria Sun Sep 29 2024 | 0 answers 0
Could you please provide an example of an ACE, or Asset-Backed Commercial Paper? ACEs are a type of short-term debt instrument that are backed by a pool of assets, such as loans, mortgages, or receivables. They are often used by financial institutions to raise funds quickly and efficiently. An example of an ACE might be a commercial paper issued by a bank that is backed by a portfolio of auto loans. The bank would sell the ACE to investors, who would receive interest payments based on the income generated by the underlying auto loans. The ACE would have a maturity date, at which point the bank would either repay the investors in full or roll over the ACE into a new one. What is an example of an ACE?

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