The creation of bond classes with a waterfall structure for sharing losses is referred to as: A.

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The creation of bond classes with a waterfall structure for sharing losses is referred to as:

A. Time tranching.

B. Credit tranching.

C. Overcollateralization.

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Fixed Income Analysis

ISBN: 9781119850540

5th Edition

Authors: Barbara S. Petitt

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Question Posted: Nov 04, 2023 11:08 PM

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The creation of bond classes with a waterfall structure for sharing losses is referred to as: A.

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The correct answer is B Credit tranching Credit tranching is a form of credit enhancement that invol...View the full answer

Fixed Income Analysis

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