Credit Enhancement

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Dictionary Says

Definition of 'Credit Enhancement'

A method whereby a company attempts to improve its debt or credit worthiness. Through credit enhancement, the lender is provided with reassurance that the borrower will honor the obligation through additional collateral, insurance, or a third party guarantee. Credit enhancement reduces credit/default risk of a debt, thereby increasing the overall credit rating and lowering interest rates.
Investopedia Says

Investopedia explains 'Credit Enhancement'

Credit enhancement is used to obtain better terms for an outstanding debt. Securitization, posting collateral and obtaining external credit enhancement such as a letter of credit are some basic forms of credit enhancement. Firms may also increase cash reserves or take other internal measures to uphold superior solvency ratios.

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Search results for

'Credit Enhancement'

  • Investing In Securitized Products

    http://www.investopedia.com/articles/bonds/08/securitzed-assets.asp
    ... and Junk Bonds: Everything You Need To Know.) Internal credit enhancement refers
    to safeguards that are built into the structure of the securitized product ...

  • Asset-Backed Commercial Paper Carries High Risk

    http://www.investopedia.com/articles/bonds/08/commercial-paper.asp
    ... Multi-seller programs also often employ some type of credit enhancement
    that helps to mitigate credit and liquidity risks. This ...

  • CFA Level 1 Study Guide - Fixed Income Investments - Asset-Backed ...

    http://www.investopedia.com/exam-guide/cfa-level-1/fixed-income-investments/abs-asset-backed-security.asp
    ... Free Annual Reports. More Features ». Personal Finance; Credit & Loans; Insurance;
    Retirement; Home & Auto; Savings; Budgeting; Entrepreneurship; ...

  • Fatal Seduction Of The Municipal Bond Insurers

    http://www.investopedia.com/articles/bonds/08/municipal-bond-insurance.asp
    ... according to the SIFMA. Within this issuance, roughly 48% of the nominal
    dollar volume had credit enhancement. About 90% of the ...

  • Find Security In Covered Bonds

    http://www.investopedia.com/articles/bonds/09/covered-bonds.asp
    ... Issuers can provide additional credit enhancement, like insurance, or make contractual
    arrangements with third parties to continue interest and principal ...

  • Series 7 Study Guide - Portfolio Management - Revenue Bond ...

    http://www.investopedia.com/exam-guide/series-7/portfolio-management/revenue-bond-analysis.asp
    ... In the muni world, the term credit enhancement usually refers to bond insurance,
    bank letters of credit, state school guarantees, and credit programs of ...

  • Spreading The Word About Portfolio Margin

    http://www.investopedia.com/articles/optioninvestor/09/portfolio-margin.asp
    ... the greater the reduction in margin and the greater the return enhancement at that ...
    the 250/240 spread and assuming a 15 cent per share credit, the traditional ...

  • Superior Energy Services Operations Review

    http://stocks.investopedia.com/stock-analysis/2011/Superior-Energy-Services-Operations-Review-SPN-HERO-HLX-BAS0624.aspx
    ... Superior Energy Services reports in three segments - Drilling Products and Services,
    Subsea and Well Enhancement and Marine. Get Free Stock Analysis By Email. ...

  • CFA Level 1 Study Guide - Fixed Income Investments - Bondholder's ...

    http://www.investopedia.com/exam-guide/cfa-level-1/fixed-income-investments/bondholders-rights.asp
    ... Free Annual Reports. More Features ». Personal Finance; Credit & Loans; Insurance;
    Retirement; Home & Auto; Savings; Budgeting; Entrepreneurship; ...

  • Exploring Real Estate Investments: Advantages And Disadvantages ...

    http://www.investopedia.com/university/real_estate/real_estate4.asp
    ... Yield Enhancement - As part of a portfolio, real estate allows you to achieve
    higher returns for a given level of portfolio risk. ...

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