CFA Practice Question

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
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