Which of the following is the best description of cash reserve funds as an internal credit enhancement? Cash reserve funds are investments in:
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A) |
money market instruments created from securitizing mortgages. | |
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B) |
money market instruments created from issuance proceeds. | |
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C) |
U.S. Treasury bonds created from issuance proceeds. | |
Cash reserve funds are cash deposits that come from issuance proceeds. This excess cash provides for the establishment of a reserve account to pay for future losses. Cash reserve funds are usually used along with external credit enhancements. | 
发表于 2011-3-23 14:47
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