Credit enhancement of asset-backed security, Financial Management

Credit enhancement of an asset-backed security implies the existence of support for one or more of the bondholders in the structure. Credit enhancement levels vary based on the credit rating each rating agency provides to the issuer. Hence, the level of credit enhancement is decided by the rating agency. Two types of credit enhancement structures are there. They are:

  1. External Credit Enhancement
  2. Internal Credit Enhancement
Posted Date: 9/8/2012 9:07:32 AM | Location : United States







Related Discussions:- Credit enhancement of asset-backed security, Assignment Help, Ask Question on Credit enhancement of asset-backed security, Get Answer, Expert's Help, Credit enhancement of asset-backed security Discussions

Write discussion on Credit enhancement of asset-backed security
Your posts are moderated
Related Questions
2010 equity balance required: (600-20 - 25 - 15 - 20)= 520 employees eligible Total expected equivalent value = 520 x 500 options x $1.48 = $384,800 $384,800 x 3/4 years = $28

Accounting Framework - Convention of Disclosure The doctrine of disclosure suggested in which all accounting statements should be honest and to that end, full disclosure of al


State the term nature of financial instruments. Nature of financial instruments (securities): Financial instruments (termed as securities) can be classifies in two broad

What are retained earnings?  Why are they important? Retained earnings denote the sum of all the earnings obtainable to common stockholders of a business throughout its whole h

You have $20 to spend on high quality pens and low quality pens. High quality pens cost $5 each and low quality pens cost $2 each.    (a) Suppose that you will spend your entire

Investment banks and securities firms Investment banks support corporations or governments in the issue of new debt or equity securities. Investment banking comprises Th

What is the role of securities firms in investment intermediaries? Securities firms assist within the trading of existing securities into the secondary markets. The two major c

Explain Dual Currency Bond A dual currency bond is a straight fixed-rate bond that is issued in one currency and pays coupon interest in that similar currency.  At maturity, th

Are there any legal factors that could restrict a corporation in its attempt to pay cash dividends to common stockholders?  Explain. A firm may be lawfully restricted as to the