CFA Practice Question

There are 490 practice questions for this study session.

CFA Practice Question

Bond issuers use different types of credit enhancement to reduce the credit risk of a bond issue and decrease their yields. Which one is NOT a form of external credit enhancement?
A. Subordination
B. Cash collateral account
C. Surety bond
Explanation: Subordination is the most popular internal credit enhancement technique.

User Contributed Comments 0

You need to log in first to add your comment.