CFA｜

问题如下：

Select the internal credit enhancement that seeks to improve the overall credit quality of a risky pool of securitized loan.

选项：

A.

Letters of credit

B.

Overcollateralization

C.

Cash collateral accounts

解释：

Correct Answer: B

Overcollateralization, one of the three main types of internal credit enhancements used in securitization transactions, is a provision that the collateral underlying the transaction is larger than the face value of the issued bonds. The extra collateral provides a cushion to cover losses from defaults in the underlying pool of collateral. A and C are incorrect because both are types of external, not internal, credit enhancements.