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3I0-012 · Question #296

Which of the following both provide credit enhancement to a true-sale securitization?

The correct answer is A. reserve account and third-party insurance. See the full explanation below for the reasoning.

Question

Which of the following both provide credit enhancement to a true-sale securitization?

Options

  • Areserve account and third-party insurance
  • Bsubordinated tranches and creditworthiness of the originator
  • Ccreditworthiness of the originator and third-party insurance
  • Dreserve account and interest rate hedging

How the community answered

(14 responses)
  • A
    71% (10)
  • B
    7% (1)
  • C
    7% (1)
  • D
    14% (2)

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