What is the Definition of Credit Enhancement?

What is the Definition of Credit Enhancement?

A technique to lower the interest payments on a bond by raising the issue’s credit rating, often through insurance in the form of a financial guarantee or with standby letters of credit issued by a bank.

Source: Insurance Handbook A guide to insurance: what it does and how it works | https://www.iii.org/

Label: Insurance
Theme: Dictionary of Insurance Terms

Other Questions: What is the definition of Insurance?

What is the Definition of Credit Enhancement?

What is the Definition of Credit Enhancement?

Check out other definition of insurance terms below:


What is the Meaning of BUSINESS INCOME INSURANCE In Insurance Terms?

Commercial coverage that reimburses a business owner for lost profits and continuing fixed expenses during the time that a business must stay closed while the premises are being restored because of physical damage from a covered peril, such as a fire. Business income insurance also may cover financial losses that may occur if civil authorities limit access to an area after a disaster and their actions prevent customers from reaching the business premises. Depending on the policy, civil authorities coverage may start after a waiting period and last for two or more weeks. Also known as business interruption insurance.


What is the Meaning of BUSINESSOWNERS POLICY/BOP In Insurance Terms?

A policy that combines property, liability and business interruption coverages for small to medium-sized businesses. Coverage is generally cheaper than if purchased through separate insurance policies.


What is the Meaning of C-SHARE VARIABLE ANNUITIES In Insurance Terms?

A form of variable annuity contract where the contract holder pays no sales fee up front or surrender charges. Owners can claim full liquidity at any time.


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