CFA Practice Question

There are 771 practice questions for this topic.

CFA Practice Question

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
Correct Answer: A

This is referred to as credit tranching.

User Contributed Comments 0

You need to log in first to add your comment.