An excess spread account incorporated into a securitization is designed to limit: A. Credit risk. B. Extension

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An excess spread account incorporated into a securitization is designed to limit:

A. Credit risk.

B. Extension risk.

C. Contraction risk.

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Fixed Income Analysis

ISBN: 9781119850540

5th Edition

Authors: Barbara S. Petitt

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Question Posted: Nov 04, 2023 11:00 PM

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An excess spread account incorporated into a securitization is designed to limit: A. Credit risk. B. Extension

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An excess spread account in a securitization is primarily designed to limit credit risk It is a mechanism put in place to provide a buffer or cushion ...View the full answer

Fixed Income Analysis

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