Who determines the amount of credit enhancement needed

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Reference no: EM131279718

1. a. Why is it necessary for a nonagency mortgage-backed security to have credit enhancement?

b. Who determines the amount of credit enhancement needed?

2. a. What is meant by a senior-subordinated structure?

b. Why is the senior-subordinated structure a form of credit enhancement?

c. What is the limitation of a third-party guarantee as a form of credit enhancement?

Reference no: EM131279718

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