Credit Enhancement

Credit enhancement is the improvement of the credit profile of a structured financial transaction or the methods used to improve the credit profiles of such products or transactions. It is a key part of the securitization transaction in structured finance, and is important for credit rating agencies when rating a securitization.

Read more about Credit Enhancement:  Types

Other articles related to "credit enhancement, credit":

External Credit Enhancement - Cash Collateral Account
... With a cash collateral account (CCA), credit enhancement is achieved when the issuer borrows the required credit support amount from a commercial bank ...
Structured Finance - Structure - Credit Enhancement
... Credit enhancement is key in creating a security that has a higher rating than the issuing company ... Credit enhancement can be created by issuing subordinate bonds ... before losses are allocated to the senior bonds, thus giving senior bonds a credit enhancement ...

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    Herman Melville (1819–1891)