Which of the following statements explains how securitization makes retail assets highly liquid and the...

Which of the following statements explains how securitization makes retail assets highly liquid and the balance sheet easier to manage?

I. The bank can raise capital by selling the securitized bonds.

II. Any need to diversify credit risk can be achieved by selling the bank’s own securitized bonds and buying other bonds that increase diversification.

III. The value of the securitization is linked to the credit rating of the bank and hence is easy to include in medium-term financial plans.

IV. Securitizations can be used to hedge credit risk by using limited market instruments.