Seeing is believing!
Before you order, simply sign up for a free user account and in seconds you'll be experiencing the best in CFA exam preparation.
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 happy to say that I passed! Your study notes certainly helped prepare me for what was the most difficult exam I had ever taken.
Andrea Schildbach
Learning Outcome Statements
describe typical credit enhancement structures used in securitizations
CFA® 2024 Level I Curriculum, Volume 4, Module 18.