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What is a B/C loan?
Similar to the bond
market, those loans which most closely conform to "vanilla" credit and
property standards are referred to as "A" paper loans and loans which do
not have these characteristics are described as "B" or "C" paper loans.
Also, similar to the bond market, interest rates on B and C paper loans
are somewhat higher than for A paper loans in order to compensate the
lender for higher perceived risk.