CFA Practice Question

There are 490 practice questions for this study session.

CFA Practice Question

Which of the following are forms of internal credit enhancements for an asset-backed security?

I. Senior-subordinated structure
II. Guarantee by a corporation
III. Bond insurance
IV. Over-collateralization
Correct Answer: I and IV

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.
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