CFA Practice Question

There are 490 practice questions for this study session.

CFA Practice Question

An ABS structure can involve ______.

I. credit tranching
II. time tranching
A. I only
B. II only
C. I and II
Explanation: Both credit tranching and time tranching can exist in an ABS structure.

User Contributed Comments 3

User Comment
dblueroom This just contradicted with a previous question. I don't think Time tranching even exists. There are only Prepayment tranching and Credit tranching mentioned in LOS.
MattNYC I looked. The CFA does say "Prepayment, or time tranching" in the section on ABS.
Willgonnabaight just put prepayment tranching if it means the same thing
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