Free ICBRR Exam Braindumps (page: 10)

After entering the securitization business, Delta Bank increases its cash efficiency by selling off the lower risk portions of the portfolio credit risk. This process ___ risk on the residual pieces of the credit portfolio, and as a result it ___ return on equity for the bank.

Which of the following risk types are historically associated with credit derivatives?

I) Documentation risk
II) Definition of credit events
III) Occurrence of credit events
IV) Enterprise risk

The pricing of credit default swaps is a function of all of the following EXCEPT:

To safeguard its capital and obtain insurance if the borrowers cannot repay their loans, Gamma Bank accepts financial collateral to manage its credit risk and mitigate the effect of the borrowers' defaults. Gamma Bank will typically accept all of the following instruments as financial collateral EXCEPT?