Credit enhancement - Revision history

imported>Doug Williamson: Correct typo - 'enhancement'.

2022-07-04T20:34:08Z

Correct typo - 'enhancement'.

← Older revision		Revision as of 20:34, 4 July 2022
Line 1:		Line 1:
	1. ''Credit risk - securities''.		1. ''Credit risk - securities''.

	In the context of securities, credit ~~enhancment~~ is increasing the creditworthiness of securities.		In the context of securities, credit enhancement is increasing the creditworthiness of securities.


	Historically there were three main methods of credit enhancement in the private sector:		Historically there were three main methods of credit enhancement in the private sector:
Line 26:		Line 27:
	* [[Credit support]]		* [[Credit support]]
	* [[Encumbrance]]		* [[Encumbrance]]
			* [[Secured]]
			* [[Securitisation ]]
			* [[Securitise]]
	* [[Security]]		* [[Security]]
	* [[Tranche]]		* [[Tranche]]

imported>Doug Williamson: Add link.

2021-11-10T21:53:34Z

Add link.

← Older revision		Revision as of 21:53, 10 November 2021
Line 28:		Line 28:
	* [[Security]]		* [[Security]]
	* [[Tranche]]		* [[Tranche]]
			* [[Unbacked]]

	[[Category:Accounting,_tax_and_regulation]]		[[Category:Accounting,_tax_and_regulation]]

imported>Doug Williamson: Add second definition. Source: Law Insider https://www.lawinsider.com/dictionary/credit-support-provider

2021-04-04T10:38:29Z

Add second definition. Source: Law Insider https://www.lawinsider.com/dictionary/credit-support-provider

← Older revision		Revision as of 10:38, 4 April 2021
Line 1:		Line 1:
	''Credit risk - securities''.		1. ''Credit risk - securities''.

	~~Credit~~ enhancment is increasing the creditworthiness of securities.		In the context of securities, credit enhancment is increasing the creditworthiness of securities.

	Historically there were three main methods of credit enhancement in the private sector:		Historically there were three main methods of credit enhancement in the private sector:
Line 11:		Line 11:

	The term 'credit enhancement' is now used in a much wider sense, to include additionally various forms of support provided by national governments, government-sponsored agencies and international agencies.		The term 'credit enhancement' is now used in a much wider sense, to include additionally various forms of support provided by national governments, government-sponsored agencies and international agencies.


			2. ''Credit risk management''.

			Any form of credit risk reduction.

			Also known as ''credit support''.


Line 16:		Line 23:
	* [[Collateral]]		* [[Collateral]]
	* [[Credit]]		* [[Credit]]
			* [[Credit risk]]
			* [[Credit support]]
	* [[Encumbrance]]		* [[Encumbrance]]
	* [[Security]]		* [[Security]]

imported>Doug Williamson: Classify page.

2021-04-04T10:20:19Z

Classify page.

@@ Line 1: / Line 1: @@
-The increasing of the creditworthiness of securities.
+''Credit risk - securities''.
 Historically there were three main methods of credit enhancement in the private sector:
@@ Line 17: / Line 19: @@
 * [[Security]]
 * [[Tranche]]

imported>Doug Williamson: Update links.

2018-01-07T10:41:35Z

Update links.

← Older revision		Revision as of 10:41, 7 January 2018
Line 1:		Line 1:
	The increasing of the creditworthiness of securities.		The increasing of the creditworthiness of securities.

	Historically there were three main methods of credit enhancement in the private sector:		Historically there were three main methods of credit enhancement in the private sector:

Line 14:		Line 15:
	* [[Credit]]		* [[Credit]]
	* [[Encumbrance]]		* [[Encumbrance]]
			* [[Security]]
			* [[Tranche]]

imported>Doug Williamson: Add link.

2016-08-10T18:02:25Z

Add link.

← Older revision		Revision as of 18:02, 10 August 2016
Line 13:		Line 13:
	* [[Collateral]]		* [[Collateral]]
	* [[Credit]]		* [[Credit]]
			* [[Encumbrance]]

imported>Doug Williamson: Layout.

2016-05-13T12:09:54Z

Layout.

← Older revision		Revision as of 12:09, 13 May 2016
Line 8:		Line 8:

	The term 'credit enhancement' is now used in a much wider sense, to include additionally various forms of support provided by national governments, government-sponsored agencies and international agencies.		The term 'credit enhancement' is now used in a much wider sense, to include additionally various forms of support provided by national governments, government-sponsored agencies and international agencies.


	== See also ==		== See also ==
	* [[Collateral]]		* [[Collateral]]
	* [[Credit]]		* [[Credit]]

imported>Doug Williamson: Expand in relation to government support.

2016-01-17T22:16:24Z

Expand in relation to government support.

← Older revision		Revision as of 22:16, 17 January 2016
Line 7:		Line 7:


	The term 'credit enhancement' is now used in a much wider sense, to include various forms of support provided by national governments, government-sponsored agencies and international agencies.		The term 'credit enhancement' is now used in a much wider sense, to include additionally various forms of support provided by national governments, government-sponsored agencies and international agencies.

	== See also ==		== See also ==
	* [[Collateral]]		* [[Collateral]]
	* [[Credit]]		* [[Credit]]

imported>Doug Williamson: Update.

2016-01-17T22:15:26Z

Update.

← Older revision		Revision as of 22:15, 17 January 2016
Line 6:		Line 6:
	#Collateralisation: Securities may be backed by other financial assets, usually equity, of higher values. The difference serves as collateral for the repayment of the debt (overcollateralisation). The issuing company may also put collateral on the differential between the respective security’s original value and its current market value (margin).		#Collateralisation: Securities may be backed by other financial assets, usually equity, of higher values. The difference serves as collateral for the repayment of the debt (overcollateralisation). The issuing company may also put collateral on the differential between the respective security’s original value and its current market value (margin).

	~~More recently the~~ term ~~has been expanded more widely~~, to include various forms of support provided by national governments, government-sponsored agencies and international agencies.
			The term 'credit enhancement' is now used in a much wider sense, to include various forms of support provided by national governments, government-sponsored agencies and international agencies.

	== See also ==		== See also ==
	* [[Collateral]]		* [[Collateral]]
	* [[Credit]]		* [[Credit]]

imported>Doug Williamson: Spacing

2013-08-05T12:31:49Z

Spacing

← Older revision		Revision as of 12:31, 5 August 2013
Line 2:		Line 2:
	Historically there were three main methods of credit enhancement in the private sector:		Historically there were three main methods of credit enhancement in the private sector:

	1. Junior/Senior tranches: The entire debt is divided into so-called junior and senior tranches, with the former bearing all the first losses. Thus, the credit standing of the remaining senior tranches is raised considerably.		#Junior/Senior tranches: The entire debt is divided into so-called junior and senior tranches, with the former bearing all the first losses. Thus, the credit standing of the remaining senior tranches is raised considerably.
			#Insurance: A third party, usually an insurance company, undertakes to insure the credit risk of the respective securities (called ‘wrapping’).
	2. Insurance: A third party, usually an insurance company, undertakes to insure the credit risk of the respective securities (called ‘wrapping’).		#Collateralisation: Securities may be backed by other financial assets, usually equity, of higher values. The difference serves as collateral for the repayment of the debt (overcollateralisation). The issuing company may also put collateral on the differential between the respective security’s original value and its current market value (margin).

	3. Collateralisation: Securities may be backed by other financial assets, usually equity, of higher values. The difference serves as collateral for the repayment of the debt (overcollateralisation). The issuing company may also put collateral on the differential between the respective security’s original value and its current market value (margin).

	More recently the term has been expanded more widely, to include various forms of support provided by national governments, government-sponsored agencies and international agencies.		More recently the term has been expanded more widely, to include various forms of support provided by national governments, government-sponsored agencies and international agencies.
Line 13:		Line 11:
	* [[Collateral]]		* [[Collateral]]
	* [[Credit]]		* [[Credit]]