By lowering credit risk, [...]increases the bond issue’s credit quality and decreases its yield.
Answer
collateral backing
Tags
#credit #enhancement #fixed #income
Question
By lowering credit risk, [...]increases the bond issue’s credit quality and decreases its yield.
Answer
?
Tags
#credit #enhancement #fixed #income
Question
By lowering credit risk, [...]increases the bond issue’s credit quality and decreases its yield.
Answer
collateral backing
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Parent (intermediate) annotation
Open it By lowering credit risk, collateral backing increases the bond issue’s credit quality and decreases its yield.
Original toplevel document
3.1.3.1. Seniority Ranking e debt repayment in the case of default. In contrast, unsecured bonds have no collateral; bondholders have only a general claim on the issuer’s assets and cash flows. Thus, unsecured bonds are paid after secured bonds in the event of default. <span>By lowering credit risk, collateral backing increases the bond issue’s credit quality and decreases its yield.<span><body><html>
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