are in essence an insurance contract against the default of one or more borrowers. O Credit default swaps O CMOS ETFs O Collateralized debt obligations O Collars
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are in essence an insurance contract against the default of one or more borrowers.
O Credit default swaps
O CMOS ETFs
O Collateralized debt obligations
O Collars
Step by step
Solved in 3 steps
- Why are the credit default swaps, in essence, an insurance contract against the default of one or more borrowers?what are two types of credit what is a security interest who is the debtor and creditor what happens if the debtor defaults what type of transaction requires a financing statementPlease answer the following questions what are two types of credit what is a security interest who is the debtor and creditor what happens if the debtor defaults what type of transaction requires a financing statement
- ________ are, in essence, an insurance contract against the default of one or more borrowers. A) Credit default swaps B) CMOs C) ETFs D) Collateralized debt obligations E) All of the options Also state why chose the answer.A guarantee issued by an FI that obligates the FI to pay if the purchaser of the letter defaults on a debt is called a a. loan commitment. b. forward rate agreement. c. credit swap agreement. d. collar. e. None of these options are correct.Counterparty credit risk is a function of the probability of default, exposure at default, and loss given default. Assuming that the individual exposure at default with a counterparty is fixed, which of the following statements is correct? A. The probability of default can be mitigated by collateral, and exposure at default can be mitigated by netting. B. The probability of default can be mitigated by netting, and exposure at default can be mitigated by collateral. C. Loss given default can be mitigated by collateral, and exposure at default can be mitigated by netting. D. Loss given default can be mitigated by netting, and exposure at default can be mitigated by collateral.
- A CDO is a debt security collateralized by debt obligations, such as residential and commercial mortgage backed securities. Question 19 options: True FalseCan you explain Collateralized debt obligation WI9TH AN EXPAMPLE? WHICH WILL HELP IN THE PRESNTATIONWhich of the following is an arrangement by which one party promises to pay a sum of money to policyholder as protection against an adverse or unfavorable occurrence of event? a. Short Term Loans b. Fixed Deposit c. Insurance d. Investment
- Which of the following does not relate to credit risks? Select one: A. Credit risk is the possibility of a loss resulting from a borrower's failure to repay a loan or meet contractual obligations B. Credit risk also describes the risk that an insurance company will be able to pay a claim. C. It refers to the risk that a lender may not receive the owed principal and interest D. Credit risk describes the risk that a bond issuer may fail to make payment when requested E. Credit risk is the possibility of losing a lender takes on due to the possibility of a borrower not paying back a loanExplain Collateralized mortgage obligations (CMOs)?Which of the following has the highest relative likelihood of being defaulted in paying the outstanding loan? Company AB. Company EF. Company CD. Company GH.
