Difference between revisions of "Credit Enhancement"
From Open Risk Manual
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Latest revision as of 17:07, 7 February 2020
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)