CFA Practice Question
Which of the following is incorrect?
A. Pre-refunded bonds have low default risk as they have Treasuries as collateral.
B. A Muni may be insured by a third party, in which case it is called an Insured Bond.
C. The collateral for a CLO is commercial mortgages.
Explanation: The collateral for a CLO are receivables.
User Contributed Comments 2
| User | Comment |
|---|---|
| praj24 | Collateralised Loan Obligation - A security backed by a pool of debt, often low-rated corporate loans. |
| ctschro | ty praj24 |