CFA Practice Question

There are 490 practice questions for this study session.

CFA Practice Question

If an insurance company wants to offer bond insurance for an asset-backed security transaction where an AA credit rating is sought, the insurance company must have at least a ______ credit rating.
A. A
B. AA
C. AAA
Explanation: Typically a structure cannot receive a rating higher than the rating on any third-party providing an external guarantee.

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