CFA Practice Question

There are 490 practice questions for this study session.

CFA Practice Question

When ABS is structured to distribute prepayment risk it is called:

I. Prepayment tranching.
II. Credit tranching.
III. Time tranching.
A. I only
B. I and III
C. II only
Explanation: Prepayment risk is the uncertainty about the cash flow among different bond classes.

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