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Basic Question 2 of 10

The senior-subordinate structure of a pass-through security is used to redistribute ______.

A. credit risk
B. prepayment risk
C. both credit risk and prepayment risk

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I passed! I did not get a chance to tell you before the exam - but your site was excellent. I will definitely take it next year for Level II.
Tamara Schultz

Tamara Schultz

Learning Outcome Statements

describe securitization, including the parties and the roles they play

CFA® 2024 Level I Curriculum, Volume 4, Module 17.