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Basic Question 7 of 11
Which credit enhancement technique involves structuring the ABS transaction so that the value of the underlying assets exceeds the value of the issued securities?
B. Credit tranching
C. Excess spread
A. Overcollateralization
B. Credit tranching
C. Excess spread
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Edward Liu
Learning Outcome Statements
describe typical credit enhancement structures used in securitizations
CFA® 2024 Level I Curriculum, Volume 4, Module 18.