CFA Practice Question

There are 490 practice questions for this study session.

CFA Practice Question

Bond issuers use different types of credit enhancement to reduce the credit risk of a bond issue and decrease its yield. Which one is NOT categorized as an internal credit enhancement?
A. Excess spread
B. Overcollateralization
C. A letter of credit
Explanation: A letter of credit is a form of external credit enhancement for a bond issue.

User Contributed Comments 0

You need to log in first to add your comment.