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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 am using your study notes and I know of at least 5 other friends of mine who used it and passed the exam last Dec. Keep up your great work!
Barnes
Learning Outcome Statements
describe typical credit enhancement structures used in securitizations
CFA® 2025 Level I Curriculum, Volume 4, Module 18.