Credit Enhancement
From Open Risk Manual
Revision as of 17:07, 7 February 2020 by Wiki admin (talk | contribs) (Created page with "== Definition == '''Credit Enhancement''' denotes any method that enables the modification of the Credit Risk profile of a borrower == Examples == Methods by which a fina...")
Definition
Credit Enhancement denotes any method that enables the modification of the Credit Risk profile of a borrower
Examples
Methods by which a finance provider is provided with additional rights, such as
- Collateral
- Credit Insurance
- a third party Guarantee
- Overcollateralization (in the context of Securitization)
