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Basic Question 1 of 11
Which of the following are forms of internal credit enhancements for an asset-backed security?
II. Guarantee by a corporation
III. Bond insurance
IV. Over-collateralization
I. Senior-subordinated structure
II. Guarantee by a corporation
III. Bond insurance
IV. Over-collateralization
User Contributed Comments 3
| User | Comment |
|---|---|
| carsonson | senior-subordinated structure = tranche struture ? |
| reccy | External= 3rd party guarantee. Bond insurance= insurance company guarantees against risk |
| khalifa92 | @casonon, you're are right they are the same. |
I just wanted to share the good news that I passed CFA Level I!!! Thank you for your help - I think the online question bank helped cut the clutter and made a positive difference.
Edward Liu
Learning Outcome Statements
describe typical credit enhancement structures used in securitizations
CFA® 2025 Level I Curriculum, Volume 4, Module 18.