Which structure would receive a higher credit rating

Reference no: EM131781253

Question: A corporation is considering a securitization and is considering two possible credit enhancement structures backed by a pool of automobile loans. Total principal value underlying the asset-backed security is $300 million.

a. Which structure would receive a higher credit rating and why?

b. What form of credit enhancement is being used in both structures?

Reference no: EM131781253

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