n NISM Certifications
V-A NISM Series V-A
Medium

What is the purpose of ‘credit enhancement’ in case of a securitised transaction?

Practice question from Nism VA Mock Test 2 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Payment of higher coupon

  2. B

    Generating capital gain

  3. Higher credit worthiness

    Correct answer

A full explanation for this question is being written. In the meantime, the correct answer is highlighted above.

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