- CFA Exams
- CFA Level I Exam
- Topic 6. Fixed Income
- Learning Module 42. Fixed-Income Securities: Defining Elements
- Subject 2. Bond Indenture
CFA Practice Question
External credit enhancements for asset-backed securities include ______.
II. a letter of credit from a bank
III. over-collateralization
I. a seller guarantee.
II. a letter of credit from a bank
III. over-collateralization
A. I and II
B. II and III
C. I, II and III
Explanation: Over-collateralization is a form of internal credit enhancement.
User Contributed Comments 0
You need to log in first to add your comment.