Advertising

Credit enhancement

• The backing of paper with collateral, a bank LOC, or some other device to achieve a higher rating for the paper.
The firm that securitizes mortgages guarantees against defaults on the underlying pool. This is called credit enhancement.

• Purchase of the financial guarantee of a large insurance company to raise funds.

 
 

Follow this link for all the terms related to credit.

 
 Embedded terms in definition
 Collateral
Credit
Enhancement
Firm
Paper
Pool
Purchase
Rating
Underlying
 
 Related Terms
 

<< Credit crunch Credit monitoring >>

Beware of fraud originating in phone messages and faxes: FDIC Consumer News has warned before about crooks who call or e-mail consumers and pretend to be legitimate companies or government agencies wanting people to "verify" or "resubmit" (divulge) confidential information such as bank account or credit card numbers as well as Social Security numbers, passwords and personal identification numbers. Here are variations to know about. More...

The truth is more important than the facts. - Frank Lloyd Wright

Advertising



Copyright 2009-2018 GVC. All rights reserved.